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Structural modelling of investment and financial constraints: Where do we stand?

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  • Jean-Bernard Chatelain

    (University of Orléans)

Abstract

This paper surveys issues with respect to the structural modelling of econometric tests of investment facing financial constraints, to their link with firms data and assets prices, and to their impact in macroeconomic modelling. The key issue is to ground much more the interpretation of the sensitivity of investment to liquidity variables such as cash flow as a measure of financial constraints. The structural modelling of investment facing financial constraints is also limited by the structural modelling of the force driving investment dynamics such as adjustment costs, which has not been so successful empirically.

Suggested Citation

  • Jean-Bernard Chatelain, 2002. "Structural modelling of investment and financial constraints: Where do we stand?," Working Paper Research 28, National Bank of Belgium.
    • Handle: RePEc:nbb:reswpp:200205-9
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    Cited by:

    1. Hüttel, Silke & Mußhoff, Oliver & Odening, Martin & Zinych, Nataliya, 2008. "Estimating investment equations in imperfect capital markets," SFB 649 Discussion Papers 2008-016, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    2. Oleksandr Shcherbakov, 2022. "Firm‐level investment under imperfect capital markets in Ukraine," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(1), pages 227-255, February.
    3. Jean-Bernard Chatelain & Andre Tiomo, 2003. "Monetary Policy and Corporate Investment in France," Post-Print halshs-00112523, HAL.
    4. von Kalckreuth, Ulf & Jorg Breitung & Robert S Chirinko, 2003. "A Vectorautoregressive Investment Model (VIM) and Monetary Policy Transmission: Panel Evidence from German Firms," Royal Economic Society Annual Conference 2003 213, Royal Economic Society.
    5. Jean-Bernard Chatelain & Andre Tiomo, 2002. "Investment and the Cost of Capital in the Nineties in France: A Panel Data Investigation," Post-Print halshs-00112540, HAL.
    6. Geert Langenus, 2006. "Fiscal sustainability indicators and policy design in the face of ageing," Working Paper Research 102, National Bank of Belgium.
    7. Marie Diron & Maria Cruz Manzano & Thomas Westermann, 2005. "Forecasting aggregate investment in the euro area: do indicators of financial conditions help?," BIS Papers chapters, in: Bank for International Settlements (ed.), Investigating the relationship between the financial and real economy, volume 22, pages 206-27, Bank for International Settlements.
    8. Jean-Bernard Chatelain & Andre Tiomo, 2002. "Investment and the Cost of Capital in the Nineties in France: A Panel Data Investigation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00112540, HAL.
    9. repec:hum:wpaper:sfb649dp2008-016 is not listed on IDEAS

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    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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