Aghion, Philippe; Banerjee, Abhijit V.; Angeletos, … - 2021
We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …
