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dc.contributor.authorPfann, Gerard A.en_US
dc.contributor.authorLetterie, Wilkoen_US
dc.contributor.authorVerick, Sheren_US
dc.date.accessioned2009-01-28T16:13:35Z-
dc.date.available2009-01-28T16:13:35Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/20367-
dc.description.abstractThe empirical identification of non-linearities in investment relies on how investment is assumed to be separated into various regimes. Using German establishment-level panel data, we estimate a two-regime model of replacement and expansion investment which allows us to observe regime separation, an aspect of the data that is typically absent from previous empirical studies. Our results indicate that firms tend to spread the expansion of capital stock over a period of years rather than concentrating investment in a single year. Moreover, there is evidence that investment is more sensitive to fundamentals in the high regime, where establishments both replace and expand capital stock, than in the low regime, where they only invest in replacement. Finally, correcting for endogenous sample selection indicates that this source of bias does not affect the coefficient estimates significantly.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesIZA Discussion paper series 1132en_US
dc.subject.jelC24en_US
dc.subject.jelC23en_US
dc.subject.jelE22en_US
dc.subject.ddc330en_US
dc.subject.keywordinvestmenten_US
dc.subject.keywordnon-convex adjustment costsen_US
dc.subject.keywordsample selection biasen_US
dc.subject.keywordpanel dataen_US
dc.subject.stwInvestitionen_US
dc.subject.stwReinvestitionen_US
dc.subject.stwAnpassungskostenen_US
dc.subject.stwTobin's qen_US
dc.subject.stwSch├Ątzungen_US
dc.subject.stwDeutschlanden_US
dc.titleNon-Linearities in the Expansion of Capital Stocken_US
dc.typeWorking Paperen_US
dc.identifier.ppn386737142en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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