01721cas a2200241 a 4500 AALejournalIMF007931 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842593 1018-5941 BD-DhAAL BD-DhAAL Koeva Brooks, Petya. Time-To-Build and Convex Adjustment Costs / Petya Koeva Brooks. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper incorporates time-to-build into the standard investment model with convex adjustment costs. The empirical Euler equation is estimated using a U.S. firm-level panel from Compustat. In spite of the introduction of time-to-build, the magnitude of the implied adjustment costs is unrealistically high. Exploiting another approach, I test directly the restrictions imposed by time-to-build on the investment equation. The results indicate that these restrictions cannot be rejected for five of the sixteen industries in the sample. Finally I show that time-to-build can explain approximately one-third of the variation in persistence of structure investment across four-digit industries. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2001/009 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/009/001.2001.issue-009-en.xml IMF e-Library