This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment … investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the … value of assets on firms'' balance sheets. This paper deepens our understanding of firms'' investment behavior …

This paper models investment/entry decisions in a competitive industry that is subject to a quantity control on an … permit or a production license). The paper shows that liberalizing the quantity control could reduce investment in the … industry under certain circumstances. Furthermore, the level of investment is quite different when licenses are tradable than …

reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

institutional reforms reduce financial frictions? Based on a canonical investment model, we consider two potential channels: (i …

Firms in developing countries that seek outside financing for investment must often choose their debt … by appropriate policy measures to improve information on profitable investment opportunities and about firms; to directly …