The presence of investment cycles demonstrates the long-run policy of firms investing in particular periods (investment spikes) with lower or zero investment levels in between, which contradicts the smooth pattern predicted by a convex adjustment model. This paper investigates the spells between...

Dutch glasshouse firms are facing the introduction of a system of tradable CO₂ emission quotas. This paper employs a non-parametric method for modelling tradable CO₂ emissions of Dutch glasshouse firms. The method is capable of generating shifts in CO₂ emissions across the sample of firms....