This paper examines capital adjustment patterns using two large and largely novel data sets from the manufacturing sectors of Colombia and Mexico. The findings show that investment patterns in these countries resemble those reported for the United States to a surprising extent. Capital...

Venture capital firms typically invest in portfolios of only a few highly correlated enterprises. From a diversification perspective this seems suboptimal. We analyze venture capital budgeting focusing on the venture capitalist's decision to invest in correlated enterprises. We provide...