Limited liability debt financing of irreversible investments can affect investment timing through an entrepreneur … entrepreneur's unique investment opportunity, and it is shown in a standard model of irreversible investment that includes the … risks, and lowers the investment threshold. Compensating the lender for expected default losses reduces project …

Pareto-efficient consumption in a pure-exchange, one good economy varies over states of nature with respect to only two … two factors and the ratio of one’s endowment to real aggregate supply. How one’s Pareto-efficient consumption varies with …