growth of promising young firms. A model of liquidity-constrained entrepreneurs suggests that the easing of credit … constraints can induce more entry of firms with greater long-run growth potential than the easing of conventional entry barriers … would bring about. We explore this growth mechanism using a large-scale program to expand the supply of credit to small and …

We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine … mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output. Increases … in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium …

incentivize capacity investment, reduce reliance on spot markets, and enhance competition ameliorate the externality …

We develop a dynamic model of firm investment under uncertainty that captures firms' risk attitude using quantile … preferences. The firm maximizes its present value, defined as current profits and investment plus the discounted value of the τ … implies that the firm's investment policy equates the marginal cost of capital with the τ-quantile of the discounted present …

We present several empirical facts about trends in marketing investment in the US. We also present estimates of the …