We model the channels through which public expenditure on infrastructure influences firm value and shapes its investment decisions via both adjustment costs and marginal profitability of capital. We test these hypotheses by using a large panel of Italian firms. Empirical results show that...

This paper studies whether the monotonicity condition of the investment-cash flow sensitivity is satisfied empirically. We show that if this condition holds, then the point of sample separation does not affect the monotonic relationship between the sensitivities of any two complementary classes...

This paper attempts to at least partially redress a paucity of current literature on the joint analysis of inter and intra firm diffusion of innovations within as well as across countries. In particular, by using two datasets derived from independent countryspecific surveys, it undertakes an...