persistent decline in investment. Moreover, the territorial dispute has led to persistent pessimism in these firms' expectations … about future sales, which can explain 60% of the overall decline in investment. …

firms in making their investment decisions. We use a revealed preference approach that relies on the pattern of investment … spending - combined with investment theory - to estimate the discount rates used by managers. The standard story predicts that … firms with high stock prices and good investment opportunities should have discount rates that do not differ systematically …

We report laboratory experiments investigating the cyclicality of profit-enhancing investment in a competitive … environment. In our setting, optimal investment is counter-cyclical when investment costs fall following market downturns. However …, we do not observe counter-cyclical investment. Instead we see much less strategic behavior than our rational investment …

investment plans as well as actual investment are well explained by CFOs' expectations of earnings growth. The information in …

The ifo Investment Survey asks firms in the German manufacturing sector about the importance of sales, technological … factors, finance, return expectations, and macroeconomic policy for their investment activity in a given year. We show that … these subjective investment determinants 1) capture economically what their labels suggest, and 2) have strong explanatory …

Firm-level investment paths are commonly characterised by periods of low or zero investment punctuated by large … investment ‘spikes’. We document that such spikes are important for understanding firm and aggregate level investment in the UK …. We show that annual variation in aggregate investment is driven by variation in the number of firms undertaking investment …

smoothing in the investment response to aggregate shocks. The remaining 40% is explained by general equilibrium forces. The … particular, booms feed into themselves. The longer an expansion, the larger the response of investment to an additional positive … shock. Conversely, a slowdown after a boom can lead to a long lasting investment slump, which is unresponsive to policy …

Recent literature has shown that corporate indebtedness affects firm-level investment behavior but not necessarily … substitute depressed investment by their financially constrained competitors. The increase in investment, primarily driven by … equilibrium effects are unambiguously countercyclical because the increase in investment by unconstrained firms does not crowd out …

We study the effects of financial uncertainty on investment dynamics in the U.S. using a vector autoregression with … investment. These effects have declined in the post-WWII period but became more pronounced in the presence of the zero lower …

. Lumpy adjustment arises because of inattentiveness in capital investment decisions instead of the more common assumption of … with lumpy investment yields business cycle dynamics which differ substantially from those of an otherwise identical model … with frictionless investment and are much more consistent with the empirical evidence. These results therefore strengthen …