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Theoretical models point at various channels of the impact of inflation on corporate investment. This article attempts … corporate investment and inflation on the sample of 21 OECD countries in the years 1960-2005. The obtained negative relationship … relationship: marginal effect on corporate investment is higher at inflation rates between 3 and 5.5 per cent. These results …
Persistent link: https://www.econbiz.de/10008923022
The initial theories of investment have emphasized the role of reduction of interest rate and increase in output for … encouraging private investment. But there are ample grounds for doubting these theories. As a result, researchers have recently … emphasized the importance of uncertainty in determining the private rate of investment. As different theories give various …
Persistent link: https://www.econbiz.de/10008694019
The theoretical literature suggests that there should be a bi-directional relationship between investment and mergers … in high-income countries, cross-border mergers tend to Granger cause investment, while in low- to middle-income countries …, investment Granger causes mergers. …
Persistent link: https://www.econbiz.de/10008529256
effectiveness of aid is highly sensitive to the choice of estimator and the set of control variables. When investment and human … capital are controlled for, no positive effect of aid is found. Yet, aid continues to impact on growth via investment. We …
Persistent link: https://www.econbiz.de/10011183142
The present work studies to the saving and international trade as determinants of the investment in the Latin …-American countries during 1951-2000 using data panel technique. The empirical results show that the differentials of rates of investment … investment. As far as the international trade it is possible to be indicated that while exists policies that allow to increase it …
Persistent link: https://www.econbiz.de/10011108811
The marketplace, along with its price system, is the single most important institution in a western-style free enterprise economy. The ability of prices to adjust to changes in supply and demand conditions enables the market to function efficiently and lies behind the magical invisible hand...
Persistent link: https://www.econbiz.de/10005835391
The price system, the adjustment of prices to changes in market conditions, is the primary mechanism by which markets function and by which the three most basic questions get answered: what to produce, how much to produce and for whom to produce. To the behaviour of price and price system,...
Persistent link: https://www.econbiz.de/10005836108
This introductory essay briefly summarizes the eleven empirical studies of price setting and price adjustment that are included in this special issue. The studies, which use data from several European countries, were conducted as part of the European Central Bank’s Inflation Persistence Network.
Persistent link: https://www.econbiz.de/10008777363
The U.S. mortgage loan foreclosure crisis has been called “the worst financial crisis since the great depression.” There are two distinct channels of influence of the subprime problem. The first is the rise in foreclosures that affects homeowners and the real estate industry most directly....
Persistent link: https://www.econbiz.de/10005621427
Using micro data on non-financial listed companies in Pakistan, over the period of 2000-2010, this paper emphasizes over the impact of monetary policy on economic growth through balance sheet channel. At first step, monetary tightening deteriorates the net worth of the firms and leads to cash...
Persistent link: https://www.econbiz.de/10011107430