becoming increasingly invalid. Using data from the German Socio-Economic Panel Study, I analyze the incidence and determinants …

. However, previous studies have underestimated the lumpiness. Their assumption of constant capital utilization reduces firms …' incentives to undertake large investments as it prevents reserve capacity building. This paper shows that if capacity utilization … fixed capital adjustment costs, heterogeneous firms, variable utilization, and aggregate technology shocks, I numerically …