We develop a dynamic model of trading and investment with limited aggregate resources to study investment cycles …. Unverifiable idiosyncratic investment opportunities imply market prices to play a role of rent distribution, distorting private … investment incentives from a social point of view. This distortion is price-dependent, leading to two-sided inefficient …

We investigate the impact of employee treatment on labor investment efficiency. We provide evidence that employee … fundamentals, i.e., higher labor investment efficiency. The effect of employee treatment on labor investment efficiency is stronger …-in-difference method, we also show that employee-friendly firms have higher labor investment efficiency in the post-financial crisis period …

be welfare-improving. We find that imposing a penalty helps to improve investment efficiency, but it also brings a … greatest degree, as the benefit from reducing the investment inefficiency outweighs the expected deadweight cost. Otherwise, it …