Using a newly constructed panel dataset of German enterprises, I estimate R&D and capital investment equations for the … time period from 1990 to 1994. Simple accelerator specifications indicate considerable sensitivity of R&D and investment to … account, but a significant positive relationship between cash flow and investment remains for relatively small firms. In the …

This paper attempts to test whether financial supply-side shifts explain the low-investment climate of private firms in … Germany. The core contention is that a firm's financial position contributes to its access to external finance on credit …