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Using a newly constructed panel dataset of German enterprises, I estimate R&D and capital investment equations for the time period from 1990 to 1994. Simple accelerator specifications indicate considerable sensitivity of R&D and investment to cash flow for relatively small firms. Much of this...
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We examine empirically the role of lending relationships in determining the collateral requirements, costs and availability of external funding. The data originate from a recently concluded survey of small and medium-sized German firms. In our descriptive analysis, we explore the borrowing...
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