shocks have a very persistent effect on real activity. In determining the speed of recovery from an adverse economic shock …, the most important factor is the extent to which the shock erodes entrepreneurial wealth. …

We argue that positive comovements between land prices and business investment are a driving force behind the broad … identify a shock that drives most of the observed fluctuations in land prices. Our estimates imply that these two features … joint dynamics of land prices and business investment. …

guarantee existence. When investment adjustment costs are introduced, the monetary and fiscal policy dichotomy is in principle …

adjustment function implies that aggregate investment is relatively unresponsive to aggregate shocks in deep recessions as …

emerging markets. The paper measures the risk of short-term exposure by estimating, at the firm level, the effect on investment … not find that this reduction in net worth translates into a drop in investment. …

more favourable loan package; that it is associated with over-investment even when investment does not create collateral …

We argue that, in a simple setting, the relation between the intensity of competition and cost-reducing investment is U … show that, except for firms that are much less efficient than the competitor, investment in the subgame-perfect equilibrium …

or positive effects on R&D-investment, respectively. Both possibilities arise in plausible situations, even if one uses … on investment more likely. Extending the basic framework, the paper shows that separation of ownership and control …, endogenous entry and cumulative investments make positive effects of competition on investment more likely. Imperfect upstream …

on own effort and negatively on the effort of competitors. Such auctions arise naturally in the context of investment … the strategic situation of a two-stage game with investment preceding homogenous Bertrand competition. We obtain …