the investment rate and the wage share of income in the long run. It is shown that a rising benchmark interest rate …

for further research, especially on the motivations behind investment decisions. Investments in market economies are …) and the General Theory (1936), as well as follow-ups in the post-Keynesian approaches and others dealing with "fundamental … society. By shaping business concerns and strategies, social institutions have a major impact on investment decisions in a …

The large majority of the work published on firm investment is done in the neoclassical frame of a rational optimizing … firm attempting to achieve optimal size. While this frame addresses one important consideration in firm investment, it has … cashflows are affecting the firm investment decisions. Second, the standard approach operates on an "average firm," which in …

This paper identifies the aggregate financial shocks and quantifies their effects on business investment based on an ….S. public firms' aggregate investment. The negligible aggregate relevance of financial shocks mainly results from the …, financially constrained firms are directly forced to cut investment, which dampens the aggregate investment demand and lowers the …

This paper analyses the theoretical and policy implications of assuming firm-specific lumpy investment behaviour by … firms and compares such implications to those occurring when adopting different investment specifications in a new …-Keynesian framework. We develop numerical simulations of the lumpy investment model by Sveen and Weinke (2007) and of other five …