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If the relation between investment and economic growth is well established in the macroeconomic literature, the … linking investment and firm performance in the French and Italian manufacturing industries. It does so by putting forth a … novel methodology to identify investment spikes that corrects for size dependence. While maintaining the desired properties …
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Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that...
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investment allocation between inventive and absorptive R&D. Cognitive distance between firms changes as a function of the …
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In this paper, we introduce adoption costs in a canonical vintage capital model. Adoption costs take the form of a direct loss in production during a fixed period of time. We explicitly characterize the optimal machine replacement policy as a function of the adoption period. Using an explicit...
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