debt is strongly negatively correlated with corporate debt and investment, but strongly positively correlated with … strategy influences firms' capital structures and investment policies …

. Firms' shareholders choose not only production and investment, but also capital structure and payout policy subject to … as well as reduce shareholder payout. This mechanism parsimoniously accounts for postwar comovement in investment, stock …

investment responses of their competitors. Formal estimation of the model confirms that both types of expectational errors are … industry participants' competitive investment responses to shifts in demand. Ship prices are far too volatile given the mean … industry investment in fleet capacity, but forecast low future returns. We propose and estimate a behavioral model that can …

volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …, thus mitigating volatility. But when firms face tight credit constraints, long-term investment turns procyclical, thus …We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby …