has received little empirical documentation regarding its demand, supply, or pricing. This paper bridges the gap. First, I …

We develop a tractable general equilibrium framework providing a direct mapping between (i) the supply and demand for … capital supply, while firm profitability drives demand. Heterogeneity in supply and demand factors determines the sign of the …, investment, and profitability. We estimate the supply and demand schedules of over 4,000 U.S. firms and verify that the model …