Basu, Parantap; Guariglia, Alessandra - In: Economica 69 (2002) 276, pp. 563-81
We construct a production-based model, which compares the investment return behaviour of liquidity-constrained firms with that of unconstrained firms. The key testable implication that emerges from the model is that the investment returns of the constrained firms are predictable, while those of...