Recommended readings (Machine generated): K.J. Arrow [1953], (1964), 'The Role of Securities in the Optimal Allocation of Risk-Bearing', Review of Economic Studies, 31 (2), April, 91-6 -- Peter A. Diamond (1967), 'The Role of a Stock Market in a General Equilibrium Model with Technological...

This book presents an up-to-date overview of the theory as well as the empirics of the relationship between investment, financial imperfections and uncertainty. After reviewing the capital market imperfections literature and the empirical results, the authors discuss both traditional investment...