@inproceedings{67e6413f8cee4ad2a21bda9b7062c0b0,
title = "Expansionary investment activities: Assessing equipment and buildings in productivity",
abstract = "We study firm-level expansionary investment activities in both equipment and buildings—the so-called investment spikes. Our identification strategy decomposes firm investment spikes into three streams: a spike in equipment only, buildings only, or a simultaneous spike. Empirically, we find that the timing and size of investment in equipment and buildings are not independent. Firms conducting a simultaneous spike enhance firm scale more than in the case of a spike in equipment or buildings alone. Employment growth occurs when a firm builds structures. Investment in equipment affects the optimal input mix and high productivity in equipment and buildings provides investment timing signals. In low-tech sectors firm production growth depends on investment in buildings. In contrast, a necessary condition for firms in high-tech sectors to grow their production is investment in equipment.",
keywords = "buildings, efficiency, equipment, input mix, interrelation, investment spikes, labour intensity, low- and high-tech, productivity, scale",
author = "Jasper Brinkerink and Andrea Chegut and Wilko Letterie",
year = "2020",
month = oct,
day = "20",
doi = "10.1007/978-3-030-47106-4_13",
language = "English",
isbn = "9783030471057",
series = "Springer Proceedings in Business and Economics",
publisher = "Springer Science and Business Media B.V.",
pages = "303--333",
editor = "Parmeter, {Christopher F.} and Sickles, {Robin C.}",
booktitle = "Advances in Efficiency and Productivity Analysis",
address = "Germany",
note = "10th North American Productivity Workshop, NAPW 2018 ; Conference date: 15-06-2018 Through 18-06-2018",
}