We survey recent microeconometric research on investment and employment that has used
panel data on individual firms or plants. We focus on model specification and econometric …

Recent theoretical developments relating to investment under uncertainty have highlighted
the importance of irreversibility for the timing of investment expenditures and their expected …

Prior research shows that financial reporting quality (FRQ) is positively related to investment
efficiency for large US publicly traded companies. We examine the role of FRQ in private …

High‐powered incentives may induce higher managerial effort, but they also expose
managers to idiosyncratic risk. If managers are risk averse, they might underinvest when firm …

This article incorporates banks and banking panics within a conventional macroeconomic
framework to analyse the dynamics of a financial crisis of the kind recently experienced. We …

In this paper, we formulate a dynamic general equilibriummodel with staggered nominal
contracts, in which households and firms use optimal filtering to disentangle persistent and …

This paper explores direct relations between corporate investment behavior and the
timeliness of accounting recognition of economic losses (TLR) reflected in a country's …

We introduce liquidity frictions into an otherwise standard DSGE model with nominal and
real rigidities and ask: can a shock to the liquidity of private paper lead to a collapse in short …

This paper derives a real options model that accounts for the value premium. If real
investment is largely irreversible, the book value of assets of a distressed firm is high relative …

The examination of the intertemporal distribution of US productivity risk suggests that the
conditional mean of productivity growth is an important determinant of macro quantities and …