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Blanchard, Olivier J; Milesi-Ferretti, Gian Maria - C.E.P.R. Discussion Papers - 2010

been significant changes in saving and investment patterns across the world and imbalances have narrowed considerably. Does …

Persistent link: https://www.econbiz.de/10008468701

Aggregate Risk and the Choice between Cash and Lines of Credit

Acharya, Viral V; Almeida, Heitor; Campello, Murillo - C.E.P.R. Discussion Papers - 2012

We model corporate liquidity policy and show that aggregate risk exposure is a key determinant of how firms choose between cash and bank credit lines. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result, firms with high aggregate risk find it costly to get credit...

Persistent link: https://www.econbiz.de/10011083590

The Real Effects of Investor Sentiment

Polk, Christopher; Sapienza, Paola - C.E.P.R. Discussion Papers - 2003

traders to arbitrageurs? We study firm business investment to address this question. In our model, benevolent managers of … with positive net present value. Empirically, we find a positive relation between investment and a number of proxies for … mispricing, controlling for investment opportunities and financial slack, suggesting that overpriced (underpriced) firms tend to …

Persistent link: https://www.econbiz.de/10005067581

Asset Prices and Business Cycles with Costly External Finance

Gomes, Joao F; Yaron, Amir; Zhang, Lu - C.E.P.R. Discussion Papers - 2003

This Paper asks whether the asset pricing fluctuations induced by the presence of costly external finance are empirically plausible. To accomplish this, we incorporate costly external finance into a dynamic stochastic general equilibrium model and explore its implications for the properties of...

Persistent link: https://www.econbiz.de/10005667119

The origins of the German current account surplus: Unbalanced productivity growth and structural change

Coricelli, Fabrizio; Ravasan, Farshad R; Wörgötter, … - C.E.P.R. Discussion Papers - 2013

The surge in the German current account surplus in the 2000s is often interpreted as the result of efficiency-enhancing structural reforms, especially in the labor market. However, this interpretation is puzzling because the growth rate of the German economy has been one of the lowest in the...

Persistent link: https://www.econbiz.de/10011083287

The Demand for Liquid Assets, Corporate Saving, and Global Imbalances

Bacchetta, Philippe; Benhima, Kenza - C.E.P.R. Discussion Papers - 2012

, because the demand for foreign bonds is a complement to domestic investment rather than a substitute. We show that this …-growth, high-investment, emerging countries. …

Persistent link: https://www.econbiz.de/10011084493

Corporate Saving in Global Rebalancing

Bacchetta, Philippe; Benhima, Kenza - C.E.P.R. Discussion Papers - 2014

In this paper, we examine theoretically how corporate saving in emerging markets is contributing to global rebalancing. We consider a two-country dynamic general equilibrium model, based on Bacchetta and Benhima (2014), with a Developed and an Emerging country. Firms need to save in liquid...

Persistent link: https://www.econbiz.de/10011084689

Population Ageing and International Capital Flows

Domeij, David; Flodén, Martin - C.E.P.R. Discussion Papers - 2004

We use the neoclassical growth framework to model international capital flows in a world with exogenous demographic change. We compare model implications and actual current account data and find that the model explains a small but significant fraction of capital flows between OECD countries, in...

Persistent link: https://www.econbiz.de/10005661601

Trade and Investment under Policy Uncertainty: Theory and Firm Evidence

Handley, Kyle; Limão, Nuno - C.E.P.R. Discussion Papers - 2012

We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is …

Persistent link: https://www.econbiz.de/10011083993

Surprise, Surprise - Measuring Firm-level Investment Innovations

Bachmann, Rüdiger; Elstner, Steffen; Hristov, Atanas - C.E.P.R. Discussion Papers - 2014

Firms expect certain investment expenditures. Firms realize certain investment expenditures. The difference is an … investment surprise. With the help of the IFO Investment Survey for the German manufacturing sector we measure firms …’ (quantitative) investment expectations and firms’ (quantitative) investment realizations on a yearly basis and construct a panel of …

Persistent link: https://www.econbiz.de/10011084608