If the relation between investment and economic growth is well established in the macroeconomic literature, the existence of a similar link at the level of the firm has been challenged by empirical work. This paper investigates the channels linking investment and firm performance in the French...

Are firms` expectations systematically too optimistic or too pessimistic? Does it matter? We use micro data from the West German manufacturing subset of the IFO Business Climate Survey to infer quarterly production changes at the firm level and combine them with production expectations over a...

We investigate the potential for statistical forecasting of aggregate oil and gas investment on the Norwegian Continental Shelf (NCS). A unique and detailed dataset containing data from 109 different fields on the NCS between 1970 and 2015 was employed. A set of 1080 autoregressive distributed...

Short-term increasing returns to production factors are usually found in empirical studies. We argue they can be due to omitted variables, particularly the intensity of factor utilisation. Thanks to original French firm-level data (1992-2008), we show how increasing returns to scale disappear...

If the relation between investment and economic growth is well established in the macroeconomic literature, the existence of a similar link at the level of the firm has been challenged by empirical work. This paper investigates the channels linking investment and firm performance in the French...

Operating performance of a firm is dependent on many factors of which foreign investment today is considered a highly crucial one. This is more so in a developing open economy like India where domestic capital base for targeted growth is relatively weak. Evidences of relationship between foreign...

For more than half a century, inventory investment has attracted wide attention as a major cause of short-term macroeconomic fluctuations, and the mechanisms involved have been the focus of many major studies. Yet microeconomists and business people familiar with corporate behavior have...

We examine how policy uncertainty affects firm innovation and competitive dynamism. In R&D races, the gap in the rate of innovation, rather than the absolute rate, determines the winner. As a result, periods of depressed innovation and investment from policy uncertainty present an opportune...

This paper proposes a macro function of investment to capture the key determinants and explore the mechanism of the determination of aggregate investment. The long-established empirical findings in the field are that investment and output are strongly correlated while costs of capital have...

The paper builds up a macro function of investment to capture various key determinants and explore the intricate determination mechanism of aggregate investment. It explicates the basic trend determinant of investment, locates the cause of investment volatility and identifies the magnifier of...