Butzen, Paxil; Fuss, Catherine; Vermeulen, Philip - In: Brussels Economic Review 45 (2002) 3, pp. 5-36
This paper investigates the effects of monetary policy on firms' investment behaviour through the interest rate and … and firms of all sizes. We proceed in two steps. First, we estimate a reduced-form investment equation derived from the … neoclassical model, augmented by cash flow. This equation gives us the sensitivity of investment to the user cost, sales and cash …