Investment dynamics with fixed capital adjustment cost and capital market imperfections

• 成果类型: Article
• 署名作者: Bayer, Christian
• 署名单位: Dortmund University of Technology
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2006.04.001
• 发表日期: 2006
• 页码: 1639-1677
• 关键词: investment; non-convex adjustment cost; imperfect capital markets; non-linear error-correction

摘要

This paper examines the implications of financing frictions on capital stocks and on capital accumulation in the presence of non-convex costs of adjusting the capital stock. In this setup finance has an influence on both, the level of capital and the timing of investment. Finance and productivity are complements and finance influences investment the strongest when firms wish to significantly adjust capital for fundamental reasons. These theoretical considerations are confronted with UK data. While finance is mostly irrelevant for long-term capital decision, the short-run investment function shows a significant impact of finance, which is also strongest for strong fundamental investment incentives. (c) 2006 Elsevier B.V. All rights reserved.