Price and Investment Dynamics: Theory and Plant‐Level Data
构建了一个企业在客户市场争夺份额并进行实物资本投资的模型，模型预测价格对成本敏感但对需求冲击反应弱，且价格与投资强相关。利用瑞典制造业工厂面板数据估计方程，结果定性支持预测，但投资与价格的关系比模型预测更强。
We construct a model of a firm competing for market share in a customer market and making investments in physical capital. The firm is financially constrained and there are implementation lags in investment. Our model predicts that product prices should depend on costs and competitors' prices but respond weakly to demand shocks. Also, prices should be strongly related to investment. We estimate price and investment equations on panel data for Swedish manufacturing plants and find results that are qualitatively in line with these predictions, though the relation between investment and prices is stronger than predicted by our model.