-econometric evaluation of their causal effects is rare. We exploit multiple changes in the area-specific eligibility criteria for a major … positive program treatment effect on employment, investment and net entry but not on TFP. OLS underestimates program effects …,300 suggesting that in some respects investment subsidies can be cost effective …

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 …

investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed … both numerically for a model with a rich mix of adjustment costs, time-varying uncertainty, and aggregation over investment … year investment response to demand shocks. This implies the responsiveness of firms to any given policy stimulus may be …

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 …

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 …

endogenous growth model with size-contingent regulations. We apply this to population administrative firm panel data from France …, where many labor regulations apply to firms with 50 or more employees. Nonparametrically, we find that there is a sharp fall … changes in the direction of R&D, and find that regulation’s negative effects only matter for incremental innovation (as …

We have conducted the first survey on management practices in transition countries. We found that Central Asian … transition countries, such as Uzbekistan and Kazakhstan, have on average very poor management practices. Their average scores are … Poland and Lithuania operate with management practices that are only moderately worse than those of western European …