probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the … of business cycle dynamics, especially sharp downturns in investment and output such as 2008-IV …

Using plant-level data from Chile and the U.S. we show that investment spikes are highly pro-cyclical, so much so that … changes in the number of establishments undergoing investment spikes (the quot;extensive marginquot;) account for the bulk of … variation in aggregate investment. The number of establishments undergoing investment spikes also has independent predictive …

This paper evaluates evidence of the impact of outbound foreign direct investment (FDI) on domestic investment rates …. OECD countries with high rates of outbound FDI in the 1980s and 1990s exhibited lower domestic investment than other … countries, which suggests that FDI and domestic investment are substitutes. U.S. time series data tell a very different story …

This paper examines the investment effects of tax subsidies for which some assets and not others are eligible …. Distortionary tax subsidies encourage firms to concentrate investments in tax-favored assets profitability of investment and …, which in turn discourages investment. Borrowing rates react so strongly that aggregate investment may rise very little, or …

The taxation of corporate assets is well understood to influence investment and firm valuation. This paper explores the … incentives than those implied by the usual static analysis. Simulation results suggest that investment is sensitive to future tax …

the model, firms are heterogeneous in productivity and make investment and financing decisions subject to capital … are unexpected and permanent, dividend payments, equity issuance, and aggregate investment rise immediately. By contrast …, when these tax cuts are unexpected and temporary, aggregate investment falls in the short run. This fall allows firms to …

Harberger triangles are used to calculate the efficiency costs of taxes, government regulations, monopolistic practices … evaluation of deadweight loss estimates led to new theories of rent-seeking and other inefficiencies of economies with multiple …