This paper provides new evidence on the response of business investment to tax incentives. I use the variation provided … depreciation allowances applicable to investment undertaken outside the three main Mexican metropolitan areas. I show that … investment is very sensitive to changes in tax variables and interest rates, with an estimated elasticity of investment with …

We study how alternative measures of market concentration may explain investment decisions of Mexican manufacturing … econometric assessments suggest that investment decisions of Mexican firms can be better explained by the Dominance Index measure … certain characteristics of the firms (size, cash flows, investment opportunities and capital intensity) as control variables. …

We study how the ownership and control structures may explain investment decisions of Mexican manufacturing firms. We … claim that agency costs, as a measure of the separation of management and control, and firms` size can explain investment … decisions. Furthermore the estimations support the necessity to include investment opportunities and cash flow as control …

We study how competition and corporate governance may explain investment decisions of Mexican manufacturing firms. We … census data. Our results suggest that investment is better explained by the Dominance Index, a Mexican measure of … ownership and control), and market competition may encourage investment decisions. Furthermore they suggest an inverse …