“…The absence of long-term financing, the high interest rate or the particularly high Brazilian entrepreneurs's liquidity preferences have been pointed out as the main problems in increasing autonomous investment (Bastos & d'Avila, 2007;Cardoso de Mello & Novais, 1998;Tavares, 1999). However, although these issues are of main relevance, affecting who is going to invest, in which sectors and with which techniques, they did not fully explain the long-term aggregate investment behaviour 1 (Bastos & d'Avila, 2007;Serrano, 1995Serrano, , 2016. In turn, in a fully induced-investment theory, even in the long run, entrepreneurs can be schumpeterian, they can replace each other through innovation, but the aggregate investment must adjust to demand, implying a trend to a normal degree of capacity utilization (Garegnani & Palumbo, 1998;Serrano & Freitas, 2017).…”