Because firms invest heavily in R&D, software, brands, and other intangible assets—at a rate close to that of tangible assets—changes in measured GDP, which does not include all intangible investments, understate the actual changes in total output. If changes in the labor input are more...

When firms are able to pledge their assets as collateral, investment and borrowing become endogenous: pledgeable assets support more borrowings that in turn allow for further investment in pledgeable assets. We show that this credit multiplier has an important impact on investment when firms...

Because firms invest heavily in R&D, software, brands, and other intangible assets--at a rate close to that of tangible assets--changes in measured GDP, which does not include all intangible investments, understate the actual changes in total output. If changes in the labor input are more...