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Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom
The financing of R&D provides a potentially important channel to link finance and economic growth, but there is no direct evidence that financial effects are large enough to impact aggregate R&D.Expand
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Working Capital and Fixed Investment: New Evidence on Financing Constraints
This article presents new tests for finance constraints on investment by emphasizing the often-neglected role of working capital as both a use and a source of funds. The coefficient of endogenousExpand
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How responsive is business capital formation to its user cost?: An exploration with micro data
Abstract The response of business capital formation to its user cost is critical to evaluating tax reform, deficit reduction, and monetary policy. Evidence for a substantial user cost elasticity,Expand
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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
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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
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Household Debt in the Consumer Age: Source of Growth--Risk of Collapse
The 2008 U.S. financial upheaval raises important questions about the sources of household consumption and debt growth, along with their macroeconomic effects. We argue that spending and financialExpand
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Inventory Investment, Internal-Finance Fluctuation, and the Business Cycle
IT IS A well-known fact that inventory disinvestment can account for much of the movement in output during recessions. Almost one-half of the shortfall in output, averaged over the five interwarExpand
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A New Approach to Estimating Production Function Parameters: The Elusive Capital–Labor Substitution Elasticity
Parameters of taste and technology are central to a wide variety of economic models and issues. This article proposes a simple method for estimating production function parameters from panel data,Expand
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Inequality, the Great Recession, and Slow Recovery
Rising inequality reduced income growth for the bottom 95% of the US personal income distribution beginning about 1980. To maintain stable debt to income, this group’s consumption-income ratio neededExpand
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That Elusive Elasticity: A Long-Panel Approach To Estimating The Price Sensitivity Of Business Capital
The sensitivity of business capital formation to its user cost plays a key role in the analysis of many economic issues. Although this elasticity has been the subject of an enormous number ofExpand
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