Showing 1 - 10 of 62
We develop a model of investment with financial constraints and use it to investigate the relation between investment and Tobin’s q. A firm is financed partly by insiders, who control its assets, and partly by outside investors. When insiders’ wealth is scarce, they earn a rate of...
Persistent link: https://www.econbiz.de/10005051248
of agents in exchanging money for goods, but on the arrangements for clearing and settlement of credit instruments. The …A segmented markets model is constructed in which transactions are conducted using credit and currency. Goods market … novelty of the paper is to show how the diffusion of a money injection by the central bank depends not only on the interaction …
Persistent link: https://www.econbiz.de/10004977928
, agents have excess demand for or supply of money balances. Banks arise to reallocate excess cash by taking deposits from …
Persistent link: https://www.econbiz.de/10005069487
and credit can improve welfare relative to the use of credit alone. This occurs because money allows for transactions to … money and credit. Our methodology for investigating identity theft is a general one, whose application is not necessarily … this paper we provide a model of “identity†and its use in credit transactions. In the environments we construct …
Persistent link: https://www.econbiz.de/10005051275
I construct a heterogeneous agents economy that mimics the time-series behavior of the US earnings distribution from 1963 to 2003. Agents face aggregate and idiosyncratic shocks and accumulate real and financial assets. I estimate the shocks driving the model using data on income inequality, on...
Persistent link: https://www.econbiz.de/10004970314
Persistent link: https://www.econbiz.de/10004970322
This paper contributes to the literature comparing the relative performance of financial intermediaries and markets by studying an environment in which a trade-off between risk sharing and growth arises endogenously. Financial intermediaries provide insurance to households against a liquidity...
Persistent link: https://www.econbiz.de/10004970349
This paper studies the provision of incentives to reallocate capital when managers are reluctant to relinquish control and have private information about the productivity of assets under their control. We show that when managers get private benefits from running projects substantial bonuses are...
Persistent link: https://www.econbiz.de/10004970357
This paper examines the role of bank lending in the transmission of monetary policy in the presence of capital adequacy regulations. I develop a dynamic model of bank asset and liability management that incorporates risk-based capital requirements and an imperfect market for bank equity. These...
Persistent link: https://www.econbiz.de/10005090765
In this paper, I examine the implications of collateral constraints in a production economy and demonstrate that collateral constraints may have a role to play in resolving two outstanding puzzles: the risk-free rate puzzle and the total factor productivity puzzle. The first puzzle, as noted by...
Persistent link: https://www.econbiz.de/10005090769