Showing 1 - 10 of 104
good investment opportunities, but is negatively related to growth for firms whose growth opportunities are either not …
Persistent link: https://www.econbiz.de/10013138668
In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms … aggregate investment obtained from adding up the actions of firms subject to aggregate and idiosyncratic shocks, is highly non … postwar sectoral U.S. manufacturing equipment and structures investment. For a given sequence of aggregate shocks, the …
Persistent link: https://www.econbiz.de/10013125317
It is well understood that investment serves as a shock absorber at the time of crisis. The duration of the drag on … investment, however, is perplexing. For the nine Asian economies we focus on in this study, average investment/GDP is about 6 … between the sustained reserve accumulation and the persistent and significantly lower levels of investment in the region. Put …
Persistent link: https://www.econbiz.de/10013072866
We propose an empirical implementation of the consumption-investment problem using the martingale representation … simplifies the investor's task of specifying the investment opportunity set and inherits the computational convenience of the … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using …
Persistent link: https://www.econbiz.de/10012772381
This paper estimates the micro-level costs of adjusting capital using detailed data onquot; investment decisions in the …; profitability. The results show clear evidence of non-convex adjustment costs inaction for capital investment and quadratic … adjustment costs conditional on positive or negativequot; investment. The adjustment costs for utilization show similar non …
Persistent link: https://www.econbiz.de/10012774916
We analyze private fixed investment in the U.S. over the past 30 years. We show that investment is weak relative to … two broad categories of explanations: theories that predict low investment because of low Q, and theories that predict low … investment despite high Q. We argue that the data does not support the first category, and we focus on the second one. We use …
Persistent link: https://www.econbiz.de/10012902577
The investment theory, in which the expected return varies cross-sectionally with investment, expected profitability …
Persistent link: https://www.econbiz.de/10012823391
conditions and economic activity across a nation's cities will together determine industrial average exposure to climate risk …
Persistent link: https://www.econbiz.de/10012976982
With functionally efficient capital markets, we expect capital to flow more to the industries with the best growth opportunities. As a result, these industries should invest more and see their assets grow more relative to industries with the worst growth opportunities. We find that industries...
Persistent link: https://www.econbiz.de/10012977620
phenomena may be related. In this paper, I investigate the hypothesis that political discord depresses private investment. To … find a negative relationship between the PCI and aggregate investment in the US. Moreover, the decline is persistent, which … lower investment rates at the firm level, particularly in firms that rely heavily on government spending and in those who …
Persistent link: https://www.econbiz.de/10013021015