Traditional analysis of the taxation of income from capital has focused on the impact of tax on marginal investment … decisions; the principal impact of tax on investment is through the cost of capital, and is generally measured by an effective … decisions of multinationals, firms choice of technology, and the choice of investment projects in the presence of binding …

This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in … investment or R&D. In identical pecifications for British firms, cash flow is informative about investment, although not about … the level of R&D spending conditional on the R&D participation decision. In the UK, we also find that investment is less …

Firm-level investment paths are commonly characterised by periods of low or zero investment punctuated by large … investment ‘spikes’. We document that such spikes are important for understanding firm and aggregate level investment in the UK …. We show that annual variation in aggregate investment is driven by variation in the number of firms undertaking investment …