Conventional estimates of the impact of taxes on investment may be seriously biased by measurement error in the cost of …, accounting for about 20 percent of the tax term's variance. Correcting for the error with IV estimation shows that taxes … significantly affect both prices and investment and that conventional results may be off by as much as a factor of four …

This paper estimates the micro-level costs of adjusting capital using detailed data on" investment decisions in the US … clear evidence of non-convex adjustment costs inaction for capital investment and quadratic adjustment costs conditional on … positive or negative" investment. The adjustment costs for utilization show similar non-convexities but with smaller …

In this paper I analyze the relationships among investment, q, and cash flow in a tractable stochastic model in which … regressions of investment on q and cash flow. In empirical studies, the estimated cash-flow coefficient is generally positive and …

-specific costs of capital. We show that SOEs did respond to the performance evaluation reform by altering their investment decisions … evidence that incentive schemes affect real investment and sheds new light on challenges faced by economic reforms in China …

, potentially spurring productive investment. Low interest rates, however, also induce entrepreneurs to lever up so as to increase … their incentives thereby lowering productivity and discouraging investment. If leverage is unregulated (for example, due to … payouts by stimulating investment in response to adverse shocks only up to a level below the first-best. The optimal monetary …

Federal tax policy provides a broad array of incentives for energy investment. I review those policies and construct … across investment classes. I then consider investment in wind generation capital and regress investment against a user cost … of capital measure along with other controls. I find that wind investment is strongly responsive to changes in tax policy …