RDP 2018-05: Do Interest Rates Affect Business Investment? Evidence from Australian Company-level Data Equation (B2)

\frac{I_{i, t}}{K_{i, t - 1}} = β q_{i, t - 1} + β D 2 D_{i, t - 1} + γ Δ r_{i, t}^{D} + ω_{i} + τ_{t} + ε_{i, t}