@techreport{NBERw7659,
 title = "Investment-Cash Flow Sensitivities are not Valid Measures of Financing Constraints",
 author = "Steven N. Kaplan and Luigi Zingales",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "7659",
 year = "2000",
 month = "April",
 URL = "http://www.nber.org/papers/w7659",
 abstract = {Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow sensitivities are not good indicators of financing constraints.   Fazzari, Hubbard and Petersen [1999] criticize those findings.  In this note, we explain how the Fazzari et al. [1999] criticisms are either very supportive of the claims in Kaplan and Zingales [1997] or incorrect.   We conclude with a discussion of unanswered questions.},
}