What explains the lagged investment effect?
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What explains the lagged investment effect? by Janice C. Eberly

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Published by National Bureau of Economic Research in Cambridge, MA .
Written in English


Book details:

Edition Notes

StatementJanice C. Eberly, Sergio Rebelo, Nicolas Vincent
SeriesNBER working paper series -- working paper 16889, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16889.
ContributionsRebelo, Sergio, Vincent, Nicolas, National Bureau of Economic Research
Classifications
LC ClassificationsHB1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL24864003M
LC Control Number2011656076

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This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment costs proposed by Christiano, Eichenbaum and Evans () predicts the presence of a lagged-investment effect and that a generalized version of their model is consistent with the behavior of firm-level data from Compustat. The best predictor of current investment at the firm level is lagged investment. This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment costs proposed by Christiano et al. () predicts the presence of a lagged-investment effect and that a generalized version of their model is consistent with the behavior of firm-level data from by: What Explains the Lagged Investment Effect? Janice C. Eberly, Sergio Rebelo, Nicolas Vincent. NBER Working Paper No. Issued in March , Revised in February NBER Program(s):Economic Fluctuations and Growth. The best predictor of current investment at the firm level is lagged by:

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