کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
967954 | 931424 | 2007 | 29 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Financing constraints, irreversibility, and investment dynamics Financing constraints, irreversibility, and investment dynamics](/preview/png/967954.png)
We develop a model of an industry with many heterogeneous firms that face both financing constraints and irreversibility constraints. We use this model to examine the cyclical behavior of aggregate fixed investment, variable capital investment, and output in the presence of persistent idiosyncratic and aggregate shocks. Our model yields three main results. First, the effect of the irreversibility constraint on fixed capital investment is reinforced by the financing constraint. Second, the effect of the financing constraint on variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two constraints is key for explaining why input inventories and material deliveries of US manufacturing firms are so volatile and procyclical, and also why they are highly asymmetrical over the business cycle.
Journal: Journal of Monetary Economics - Volume 54, Issue 7, October 2007, Pages 2102–2130