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Financing Constraints and Corporate Investment
Most empirical models of investment rely on the assumption that firms are able to respond to prices set in centralized securities markets (through the "cost of capital" or "q"). An alternativeExpand
Capital-Market Imperfections and Investment
Over the past decade, a number of researchers have extended conventional models of business fixed investment to incorporate a role for financial constraints' in determining investment. This paperExpand
Precautionary Saving and Social Insurance
Micro data studies of household saving often find a significant group in the population with virtually no wealth, raising concerns about heterogeneity in motives for saving. In particular, thisExpand
The Importance of Precautionary Motives in Explaining Individual and Aggregate Saving
This paper examines predictions of a life-cycle simulation model -- in which individuals face uncertainty regarding their length of life, earnings, and out-of-pocket medical expenditures, andExpand
Business Research
Abstract“That which man altereth not for the better, Time, the great Innovator, altereth for the worse.”
Entrepreneurship and Household Saving
Abstract Using data from the 1983 and 1989 Federal Reserve Board Surveys of Consumer Finances, we quantify three findings about entrepreneurial saving decisions and their role in household wealthExpand
Tax policy and business investment
In this survey, we review research on tax policy and business investment with four objectives. First, we use a simple prototypical dynamic neoclassical investment model to derive and explain effectsExpand
A Reconsideration of Investment Behavior Using Tax Reforms as Natural Experiments
We thank Alan Auerbach, Ricardo Caballero, Bill Gentry, Bronwyn Hall, Robert Hall, Charles Himmelberg, Anil Kashyap, Steve Oliner, Kristen Willard, and seminar participants at the Brookings Panel onExpand
Federal Government Debt and Interest Rates
Does government debt affect interest rates? Despite a substantial body of empirical analysis, the answer based on the past two decades of research is mixed. While many studies suggest, at most, aExpand
Investment-Cash Flow Sensitivities are Useful: A Comment on Kaplan and Zingales
A recent paper in this Journal by Kaplan and Zingales reexamines a subset of firms from work of Fazzari, Hubbard, and Petersen and criticizes the usefulness of investment-cash flow sensitivities forExpand