U.S. business investment has taken a serious toll during the global financial crisis and also in the recovery phase … investment did not pick up as expected. What is surprising is that the alleged investment slowdown happened at a time of record …, and strong labor markets-factors established in supporting business investment. Applying accelerator models and Bayesian …

We study the time-varying effects of Tobin's q and cash flow on investment dynamics in the USA using a vector … variation over time of the response of investment to shocks in both variables. The time-varying sensitivity of investment to a … show that, although Tobin's q and cash flow are complementary sources of information for investment decisions, their …