Conventional estimates of the impact of taxes on investment may be seriously biased by measurement error in the cost of … capital equipment, this paper provides direct evidence of measurement error in the tax component of the cost of capital …, accounting for about 20 percent of the tax term's variance. Correcting for the error with IV estimation shows that taxes …

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 …

Several investment-repatriation strategies are added to the standard model of a multinational in which an affiliate is … alternative strategies can effect real investment throughout the worldwide corporation. We use firm level data for U ….S. multinationals to test for the importance of alternative strategies. The evidence is generally consistent with the theory …

A universal fact of firm-level data is that investment is lumpy: firms either replace a considerable fraction of their … existing capital (spike) or do not invest at all (inaction). This paper incorporates the lumpy nature of investment into the … study of how tax policy affects investment behavior. We show that tax policy can directly impact the lumpiness of investment …

We measure the impact of measurement error in labor-supply elasticities estimated over recalled usual work hours, as is …

used estimation techniques in the productivity literature fail in the presence of plausible amounts of measurement error in … production functions, we need to account for the ubiquity of measurement error in capital stock. This paper shows that commonly … capital. We propose an estimator that addresses this measurement error, while controlling for unobserved productivity shocks …

the household budget constraint. In this paper we use transaction-level retail investment data to assess the measurement …