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A tale of two debt crises: a stochastic optimal control analysis

Stein, Jerome L. - Institut für Weltwirtschaft (IfW) - 2009

Banks should evaluate whether a borrower is likely to default. The author applies several techniques in the extensive mathematical literature of stochastic optimal control/dynamic programming to derive an optimal debt in an environment where there are risks on both the asset and liabilities...

Persistent link: https://www.econbiz.de/10008561122

External factors affecting investment decisions of companies

Bialowolski, Piotr; Weziak-Bialowolska, Dorota - Institut für Weltwirtschaft (IfW) - 2013

In this paper we attempt to investigate the importance of certain external factors on the investment decision among Polish companies. With the use of data from the tailored made Survey on Receivables we examine factors influencing investment decisions of companies in Poland, assess the relation...

Persistent link: https://www.econbiz.de/10010956060

Access to Finance and Exporting Behavior in Transition Countries

Bernard, Alex; Stabilito, Augusto; Yoo, Julien Donghoon - Institut für Weltwirtschaft (IfW) - 2010

We analyze the link between firms’ access to finance and their decisions to enter and exit the export market. We employ … contrast, there is no relationship between the decision of firms to enter or exit export markets and their access to finance …. This may suggest that internal finance plays a greater role in Eastern European and CIS countries than in developed …

Persistent link: https://www.econbiz.de/10010886834

Multinational versus national firms on capital adjustment costs: A structural approach

Lapatinas, Athanasios - Institut für Weltwirtschaft (IfW) - 2015

This paper provides a different perspective on the firm-level empirical analysis of the relation between foreign ownership and capital demand adjustment in host countries. The author estimates a dynamic structural model of investment on a sample of 4672 Belgian firms observed between 2003 and...

Persistent link: https://www.econbiz.de/10011263001

Modeling the Effects of Financial Constraints on Firm´s Investment

Tomat, Gian Maria - Institut für Weltwirtschaft (IfW) - 2007

external finance premium. In the presence of financial market imperfections the firm forms expectations about future financial … the interest cost of debt repayment and of a provision for external finance that depends on the firm´s expectations over …

Persistent link: https://www.econbiz.de/10005083386

Paradoxes and Mechanisms for Choice under Risk

Cox, James C.; Sadiraj, Vjollca; Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2011

Experiments on choice under risk typically involve multiple decisions by individual subjects. The choice of mechanism for selecting decision(s) for payoff is an essential design feature that is often driven by appeal to the isolation hypothesis or the independence axiom. We report two...

Persistent link: https://www.econbiz.de/10009144796

Explaining the harmonic sequence paradox

Schmidt, Ulrich; Zimper, Alexander - Institut für Weltwirtschaft (IfW) - 2011

According to the harmonic sequence paradox (Blavatskyy 2006), an expected utility decision maker's willingness-to-pay for a gamble whose expected payoffs evolve according to the harmonic series is finite if and only if his marginal utility of additional income becomes zero for rather low payoff...

Persistent link: https://www.econbiz.de/10009216280

Insurance Demand and Prospect Theory

Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2012

Empirical evidence has shown that people are unwilling to insure rare losses at subsidized premiums and at the same time take-up insurance for moderate risks at highly loaded premiums. This paper explores whether prospect theory, in particular diminishing sensitivity and loss aversion, can...

Persistent link: https://www.econbiz.de/10009391896

Wechselkursunsicherheit und Außenhandel: Eine Analye der theoretischen Literatur

Fischer, Malte - Institut für Weltwirtschaft (IfW) - 1997

The impact of exchange rate uncertainty on international trade has been discussed controversially in economic policy and theory for a long time. The paper surveys the theoretical investigations on this topic. The early modeis which analyse the influence of exchange rate uncertainty on trade,...

Persistent link: https://www.econbiz.de/10009276144

Pricing risk and ambiguity: The effect of perspective taking

Trautmann, Stefan T.; Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2011

There is a large literature showing that willingness-to-accept (WTA) is usually much higher than willingness-to-pay (WTP) in empirical studies although they should be roughly equal according to traditional economic theory. A second stream of literature shows that people are typically ambiguity...

Persistent link: https://www.econbiz.de/10009276732