This paper studies whether the monotonicity condition of the investment-cash flow sensitivity is satisfied empirically … investment-cash flow sensitivity, rejects the monotonicity condition for any common metric of financing constraints we use. The … testing procedure we propose reconciles the conflicting findings of the literature about the shape of the investment-cash flow …

American countries: Brazil, Chile and Mexico, studying a small open economy in the context of an endogenous growth model where …, Chilean and Mexican economies. The findings suggest that, in order to implement the optimal tax regime, Brazil must tax … capital at a considerably lower rate than at present. Consumption should be heavily taxed in Brazil and Mexico and optimal …

persistent decline in investment. Moreover, the territorial dispute has led to persistent pessimism in these firms' expectations … about future sales, which can explain 60% of the overall decline in investment. …