Resource misallocation lowers aggregate productive effi ciency. The existing literature often infers the magnitude of misallocation from the dispersion of average revenue products. However, the methodology is subject to several identification issues. In particular, the estimator would be upward biased by the presence of unobserved heterogeneities in output and demand elasticities; adjustment co...

The author empirically tests two aspects of the interaction between financial variables and inventory investment: negative cash flow and finance constraints due to asymmetric information. This is one of the first studies of inventory investment and finance constraints using Canadian data. A sample of Canadian manufacturing firms over the period 1992Q2–1999Q4 is split into subsamples based on ag...

China has been considered as such a successful example of enhancing economic growth by massive infrastructure investments in the past decades. A recent paper by Shi and Huang (2014) indicates a very big positive return of public infrastructure in China during 1995-2011 using China’s provincial-level data. However, the literature has provided con‡icting empirical results on the productivity e¤ec...

The models Feldstein and Rothschild, on the hand, and Jorgenson on the other adopted in 1974 to highlight the replacement ratio are identical. Yet, the authors reached opposite conclusions and that view prevailed, which is weaker in terms of theoretical and empirical foundations. This paper argues that both puzzles may be resolved by reference to the differences in the methodological preconcept...

The productivity e¤ect of public infrastructure investment is controversial in the traditional literature using aggregate production function estimation, mainly due to reverse causality. This paper develops a new approach, using a model of endogenous productivity in a …rm-level production function, and matching Chinese …rm-level production data with province-level infrastructure data. The estim...

In this paper we examine an optimal investment policy of the firm that is financed by issuing equity and debt. Recently, a number of researchers have studied the interaction among firm’s investment and financing decisions under uncertainty by means of real option framework. In the literature, investment problems for a firm with growth options, that is financed with equity and debt are investiga...

there are two main reasons for studying investment in an economy. first, the combination of firms? investment demand and household?s saving supply determines how much of an economys? resoures is invested. second, investment is highly volatile; thus investment demand may be important in the short-run fluctuations. the present article examins the relationship and veracity of existence of banks pr...

401-0252-00 U Mathematik II: Analysis II und Lineare Algebra und Systemanalyse I Di 8-10 für Studiengang Agrarwissenschaft bzw. Lebensmittelwissenschaft. Do 9-11 oder Do 15-17 für Studiengang Erdwissenschaften. Do 13-15 für Studiengang Umweltnaturwissenschaften. 2 hrs Tue 08-10 CAB G52 HG E1.2 HG E22 HG E33.3 HG F26.3 Thu 09-11 HG E21 HG E22 13-15 HG D7.2 HG E22 HG F26.5 LFW E13 LFW E15 15-17 H...

This paper models flows of foreign direct investment (FDI) in a two country, two sector DSGE framework. The allocation of capital to production capacity abroad is subject to a search-and-matching friction with endogenous capital reallocation. The model is calibrated on observed inflows and outflows of FDI and leads to dynamics of foreign direct investment consistent with the empirical evidence ...