We study the response of corporate investment in Emerging Markets to unexpected fiscal shocks. We find that, although … firm-level investment decreases on impact following unexpected public expenditure adjustments (classical Keynesian … multiplier effect), it quickly rises above pre-shock levels. The rebound in investment is facilitated by fiscal space, flexible …

of firm investment and its growth, and we also document the presence of two financial channels; the degree of firms … ownership data, we find that private investments are stimulated more for domestic firms. The presence of a private investment …

trade taxes and cuts to government investment, with no significant cuts in government consumption. Using a new dataset on … place but also trigger a painful fiscal adjustment in which public investment is largely sacrificed …

Since the global financial crisis, corporate investment has been weak in India. Sluggish corporate investment would not …, this paper analyzes the reasons for the slowdown and discusses how India can boost corporate investment, using both macro … investment but that they do not appear to account fully for recent weak performance, suggesting a key role of the bu …

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store … investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …