This paper empirically verifies that the types of capital adjustment costs serve as an important mechanism in relation … affect busin ess cycles. Specifically, it is found through empirical methods using corporate financial data that capital … economy. In particular, capital adjustment costs are empirically proven to cause investment dispersion to expand given that …

and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … that the price of capital may have been significantly distorted in the 1990s and 2000s. The distortion could have been …

which rely not only on labor, but also on capital in the production function. In the presence of capital, the choice of … bargaining, the welfare theorems do not hold, due to a hold-up effect in capital and a hiring externality, so that solving a …

public capital and expected fiscal adjustments to deficit-financed spending. Implementation delays can produce small or even … matter both quantitatively and qualitatively for long-run growth effects. When public capital is insufficiently productive …

surprising since real business cycle theory suggests that the return to capital should be measured by the return to aggregate … market capital, not stock market returns. We construct a quarterly time series of the after-tax return to business capital … volatility in the return to capital (relative to the volatility of output). We consider several departures from the benchmark …