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Stock and flow
About: Stock and flow is a research topic. Over the lifetime, 941 publications have been published within this topic receiving 30688 citations.
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TL;DR: In this paper, the relationship between aggregate productivity and stock and flow government-spending variables is investigated and the empirical results indicate that the non-military public capital stock is dramatically more important in determining productivity than is either the flow of nonmilitary or military spending, and that military capital bears little relation to productivity.
5,163 citations
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TL;DR: In this paper, the authors examine the connection between exchange rates and foreign direct investment that arises when globally integrated capital markets are subject to informational imperfections, and they develop a simple model of this phenomenon and test for its relevance in determining international capital flows.
Abstract: We examine the connection between exchange rates and foreign direct investment that arises when globally integrated capital markets are subject to informational imperfections. These imperfections cause external financing to be more expensive than internal financing, so that changes in wealth translate into changes in the demand for direct investment. By systematically lowering the relative wealth of domestic agents, a depreciation of the domestic currency can lead to foreign acquisitions of certain domestic assets. we develop a simple model of this phenomenon and test for its relevance in determining international capital flows.
1,213 citations
TL;DR: In this paper, the authors present 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, and find that the coefficient of endogenous working capital investment is negative in a fixed-investment regression.
Abstract: 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 endogenous working capital investment is negative in a fixed-investment regression, as expected if working capital competes with fixed investment for a limited pool of finance. This finding addresses a criticism of previous research on finance constraints, that cash flows may simply proxy shifts in investment demand. In addition, previous studies may have underestimated the impact of finance constraints on growth and investment because firms smooth fixed investment in the short run with working capital.
891 citations
TL;DR: For example, this article found that in 11 developing countries that liberalized their stock markets, 9 experience growth rates of private investment above their non-liberalization median in the first year after liberalizing, while in the second and third years after liberalization, this number is 10 of 11 and 8 of 11, respectively.
886 citations
TL;DR: In this paper, the authors take a step back and ask "How lumpy is investment?" by documenting the distributions of investment and capital adjustment for a sample of over 13,700 manufacturing plants drawn from over 300 four-digit industries.
723 citations