international trade in equity that encompasses complete and incomplete asset market scenarios. By separating asset prices and … net foreign equity holdings. First-order excess returns are unanticipated and i.i.d. in our model, but capital gains and … losses on equity positions feature persistent, anticipated dynamics in response to productivity shocks. The separation of …

shows that taxpayers are the main losers as subsidies are still needed. There are also serious efficiency-equity trade …

second case, it is levered equity. Debt maximizes lenders’ payoffs from financing low-NPV projects, i.e., projects that have … a high probability mass on low cashflows, thus minimizing their conservatism. Conversely, levered equity minimizes … that are relatively likely to break even are financed with debt, while less profitable projects are financed with equity …

should be sufficiently risky, ie equity, in contrast to the standard Brander-Lewis (1986) result that debt deters entry. We …-up industries and the policy debate on the separation of banking as to whether banks should be permitted to hold equity in firms. …

This Paper analyses the relationship between different equity rules and the incentives to sign and ratify a climate …