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Article Dans Une Revue IFO-Studien Année : 2002

Investment and the Cost of Capital in the Nineties in France: A Panel Data Investigation

Résumé

Using a large panel of 6,946 French manufacturing firms, this paper investigates the effect of the cost of capital and on cash flow on investment from 1990 to 1999. We compare several specifications of neo-classical demand for capital, taking into account transitory dynamics. The user cost of capital has a significant negative elasticity with respect to capital using traditional Within estimates, or as long as cash-flow is not added to the regression
when using Generalised Method of Moments estimates. When dummy variables
related to firms more sensitive to cash flow are added in the model, the user cost elasticity
is significant again and its estimate s is at most -0,26.
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Dates et versions

halshs-00112540 , version 1 (09-11-2006)

Identifiants

  • HAL Id : halshs-00112540 , version 1

Citer

Jean-Bernard Chatelain, Andre Tiomo. Investment and the Cost of Capital in the Nineties in France: A Panel Data Investigation. IFO-Studien, 2002, 48 (4), pp.655-684. ⟨halshs-00112540⟩
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