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This dissertation deals with three questions: (i) Why do investment and international capital inflows move in the same direction?
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Key Phrases - Statistically Improbable Phrases (SIPs):
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balanced subpanel, investment lumpiness, unconstrained economy, investment episodes, investment spike, unconstrained regime, mandated investment, access shock, switching regression model, adjustment cost function, credit ceiling, unbalanced panel, consumption gap, desired capital stock, pesos per dollar, variance components estimates, volatile capital flows, aggregate time series, technology parameter, borrowing country, consumption path, domestic savings rate, investment components, irreversible investment, duration model
Key Phrases - Capitalized Phrases (CAPs):
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Latin America, Log Likelihood, Economic Activity, Quarterly Journal of Economics, American Economic Review, Brookings Papers, Journal of Development Economics, New York, Department of Economics, Inter-American Development Bank, Official Entities, Other Metropolitan Areas, Review of Economic Studies
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