The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and investment likely. On the other hand, the ability of firms to...

In this paper we study the capital adjustment process in Swedish manufacturing firms and relate the empirical findings to standard models of firm behavior in the presence of impediments to capital adjustments. We find that (i) a model with irreversible capital goes a very long way in capturing...

We propose an industry-level index of capital liquidity - defined as the share of used capital in aggregate industry capital expenditure - that relates (inversely) to sunkenness of capital investment. We then test the effect of capital liquidity on the dispersion and mean of industry...

Crotty and Goldstein have developed a hybrid post-Keynesian/neo-Schumpeterian theory of investment demand. In this micro-founded theory of accumulation, the optimal investment decision depends on the level of expected profitability, the degree of competition, and the degree of financial...

This paper analyses the relationship between labour productivity growth and R&D investments of Spanish manufacturing firms during the 1990s. The purpose is to estimate the rate of return to R&D expenditures. The sample is composed by microdata from an unbalanced data panel of firms. Within the...

The advent of cloud computing promises to improve the way firms utilize IT solutions. Firms are expected to replace large and inflexible fixed-cost investments in IT with more targeted variable spending in cloud solutions. In addition, cloud usage is expected to increase the productivity of...