Recent research on business investment decisions suggests that real investment in plant and equipment is quite … significant impact on an economy's capital stock. Indeed, many countries have at times adopted investment tax incentives to … stimulate investment. The prevalence of investment incentives suggests that local policymakers believe that incentives are …

Recent research on business investment decisions suggests that real investment in plant and equipment is quite … significant impact on an economy's capital stock. Indeed, many countries have at times adopted investment tax incentives to … stimulate investment. The prevalence of investment incentives suggests that local policymakers believe that incentives are …

theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we …We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … plants. We focus on model specification and econometric estimation issues, but we also review some of the main empirical …

with valuable signals for investment adjustment. The two forces have opposite impacts on the cost of capital, and the net … effect depends on which force dominates. We show that stocks of firms with low flexibility in investment adjustment ("value … firms") command an information premium, whereas stocks of firms with high flexibility in investment adjustment ("growth …

) complementing the usual estimation of a distributed lag model. A correction term accounts for non-random sample attrition, which has … not been considered in previous studies on investment even though most (if not all) panel data sets on firms are … corporate income tax rate was partly compensated for by stricter depreciation allowances. Investment dynamics appear to be …