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Tobin's Q, investment, and endogenous adjustment of financial structure

Osterberg, William P. - Federal Reserve Bank of Cleveland - 1988

An analysis of a q model of investment in which financial structure affects firm value, using a perfect foresight model of general equilibrium that includes a debt-related agency cost; uses the comparative statics and dynamics of changing the corporate tax rate as an illustration.

Persistent link: https://www.econbiz.de/10005428227

Financial structure and the adjustment of capital stock

Osterberg, William P. - Federal Reserve Bank of Cleveland - 1988

An analysis of the corporate investment decision when financial structure has real effects, utilizing data for the U.S. manufacturing sector from 1954 to 1980.

Persistent link: https://www.econbiz.de/10005428381

Debt overhang and credit risk in a business cycle model

Occhino, Filippo; Pescatori, Andrea - Federal Reserve Bank of Cleveland - 2010

We study the macroeconomic implications of the debt overhang distortion. In our model, the distortion arises because investment is non-contractible—when a firm borrows funds, the debt contract cannot specify or depend on the firm’s future level of investment. After the debt contract is...

Persistent link: https://www.econbiz.de/10008489323

The return to capital and the business cycle

Gomme, Paul; Ravikumar, B.; Rupert, Peter - Federal Reserve Bank of Cleveland - 2006

surprising since real business cycle theory suggests that the return to capital should be measured by the return to aggregate … market capital, not stock market returns. We construct a quarterly time series of the after-tax return to business capital … volatility in the return to capital (relative to the volatility of output). We consider several departures from the benchmark …

Persistent link: https://www.econbiz.de/10005428417

Debt, collateral, and U.S. manufacturing investment: 1954-1980

Osterberg, William P. - Federal Reserve Bank of Cleveland - 1992

I perform an empirical analysis of Euler equations for the firm's choices of capital, labor, hours, and debt. Financial … capital is part of collateral. The data, for U.S. manufacturing investment from 1954 to 1980, show that the debt … Euler equations for debt and capital. …

Persistent link: https://www.econbiz.de/10005526658

Debt and equity as optimal contracts

Santos, João Cabral dos - Federal Reserve Bank of Cleveland - 1995

Using a principal-agent model in which an entrepreneur has an investment project whose returns depend on his effort, which is not observable by the financier, the author shows that the optimal contract used to finance such a project can be replicated by a unique combination of debt and equity,...

Persistent link: https://www.econbiz.de/10005428252

An analysis of causal relations among inflation, financial structure, Tobin's Q and investment

Osterberg, William P. - Federal Reserve Bank of Cleveland - 1987

An examination of the short- and long-run effects of inflation on financial markets and investment.

Persistent link: https://www.econbiz.de/10005428432

Money and capital as competing media of exchange

Lagos, Ricardo (contributor); … - 2006

Persistent link: https://www.econbiz.de/10003390594

Bridging the gap? Government subsidized lending and access to capital

Cortés, Kristle Romero; Lerner, Josh - Federal Reserve Bank of Cleveland - 2012

The consequences of providing public funds to financial institutions remain controversial. We examine the Community Development Financial Institution (CDFI) Fund’s impact on credit union activity, using hitherto little studied U.S. Treasury data. The CDFI Fund grants increase lending at credit...

Persistent link: https://www.econbiz.de/10011133734

Optimal fiscal policy when public capital is productive: a business- cycle perspective

Lansing, Kevin J. - Federal Reserve Bank of Cleveland - 1994

An examination of the business cycle implications of productive public capital in a two-sector, dynamic general … capital tax is more variable than the labor tax--features also observed in annual U.S. data. …

Persistent link: https://www.econbiz.de/10005428284