This paper empirically verifies that the types of capital adjustment costs serve as an important mechanism in relation … affect busin ess cycles. Specifically, it is found through empirical methods using corporate financial data that capital … economy. In particular, capital adjustment costs are empirically proven to cause investment dispersion to expand given that …

The CLASS model is a top-down capital stress testing framework that projects the effect of different macroeconomic … industry capital gap relative to a target ratio at different points in time under a common stressful macroeconomic scenario …. This estimated capital gap began rising four years before the financial crisis and peaked at the end of 2008. The gap has …