This paper studies the nature of capital adjustment at the plant-level. We use an indirect inference procedure to … estimate the structural parameters of a rich specification of capital adjustment costs. In effect, the parameters are optimally … chosen to reproduce the nonlinear relationship between investment and profitability that we uncover in the plant-level data …

find ex-ante welfare gains equivalent to a 3.7% increase in consumption from the investment of half of retirement wealth in …

the literature based on aggregate data. We argue that forward-looking investment in customer base combined with the fact …

In the standard model of human capital with perfect labor markets general training. When labor market frictions …

-rights approach to the theory of the firm, the same force that creates product cycles, i.e., incomplete contracts, opens the door to a …

In this essay, I discuss and compare two ways of modeling international capital market equilibrium: the orthodox …, general-equilibrium approach and the heterodox, partial-equilibrium CAPM (Capital Asset Pricing Model) approach. The benchmark …

We present a model of endogenous firm growth with R&D investment and innovation as the engine of growth. The objective … (roughly) independent of firm size (the so-called Gibrat's law) and (iii) R&D investment proportional to sales, as well as a …

model in two respects. First, capital account transactions are explicitly incorporated into the model, and secondly … capital account. In the long run, fundamental factors, such as divergences of inflation rates and real changes influencing the … rates in a world of high capital mobility …