NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Firm-Level Investment in France and the United States: An Exploration of What We Have Learned in Twenty Years

Jacques Mairesse, Bronwyn H. Hall, Benoit Mulkay

NBER Working Paper No. 7437
Issued in December 1999
NBER Program(s):   PR

Our two related goals in this paper are the following: Firstly and mainly, we want to examine the effects of major changes in modelling strategy and econometric methodology, over the past twenty years, on estimation of firm-level investment equations using panel data. Secondly, we try to assess whether the differences in the estimated investment equations, as between recent years and ten to twenty years go in the French and U.S. Manufacturing industries, are real' and economically meaningful. Thus our paper consists of a series of comparisons: a simple accelerator-profit specification versus one with error correction, traditional between- and within-firm estimation versus GMM estimation, the investment behavior of French firms versus that of U.S. firms, and investment behavior in recent years versus ten to twenty years ago. Although the important econometric advances of the past twenty years have been far from being as successful as we had hoped for, we do find some significant improvement in the specification, estimation and interpretation of firm investment equations; we also fin some real changes in the investment behavior of French and U.S. firms during these twenty years.

download in pdf format
   (2414 K)

email paper

This paper is available as PDF (2414 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7437

Published: Annales d'Economie et de Statistique, No. 55-56 (1999): 27-67.

Users who downloaded this paper also downloaded these:
Hubbard, Kashyap, and Whited w4392 Internal Finance and Firm Investment
Mulkay, Hall, and Mairesse w8038 Firm Level Investment and R&D in France and the United States: A Comparison
Bond, Elston, Mairesse, and Mulkay w5900 Financial Factors and Investment in Belgium, France, Germany and the UK:A Comparison Using Company Panel Data
Gilchrist and Himmelberg w6652 Investment, Fundamentals and Finance
Hall w8773 The Financing of Research and Development
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us