This essay surveys the body of research that asks how the efficiency of corporate investment is influenced by problems … that the marginal return to investment in firm i is the same as the marginal return to investment in firm j ? Second, do … capital budgeting process get within-firm allocations right, so that the marginal return to investment in firm i ’s division A …

the used capital price because aggregate shocks cause firms to exit and enter an investment inaction region, so higher … moments of firm size affect the used capital price and investment. We find that neither frictionless models nor models with …