heterogeneous firms and financial frictions. In the model, firms with a high return to capital increase their investment more …

This paper studies a model that includes investment-specific technological shocks, a variable capacity utilization rate … investment prices over business cycles …

model of how firms within an industry respond to a shock that leads to a long-run transition in the industry. I consider … different endogenous response of firms to the shocks. I find distinctive investment, entry and exit patterns that depend on the …'s foresight and myopia, as these shape the other firm's response to a shock and thus the competitive landscape faced by the focal …

model of how firms within an industry respond to a shock that leads to a long-run transition in the industry. I consider … different endogenous response of firms to the shocks. I find distinctive investment, entry and exit patterns that depend on the …'s foresight and myopia, as these shape the other firm's response to a shock and thus the competitive landscape faced by the focal …

myopic discounting of the future affects firms flexibility to respond to the shock by changing the extent of firm … specialization in the legacy resource, and foresight of the forthcoming shock affects the spread over time of firm response … shock to an industry but also the transition over time, which is importantly shaped by firm myopia and foresight …