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accumulation process lead to fluctuations in the real returns from intermediated investment. For this economy, we find that the … output, investment is negatively correlated with output, variations in the capital stock are quite large and interest rates …
Persistent link: https://www.econbiz.de/10013138142
This paper uses a quasi natural experiment to explore how financial education changes savings, investment, and consumer …
Persistent link: https://www.econbiz.de/10013139151
neoclassical growth model. Investment rates and total factor productivity start out low and rise over time. These model dynamics …
Persistent link: https://www.econbiz.de/10013069222
This paper studies the welfare properties of competitive equilibria in an economy with financial frictions hit by aggregate shocks. In particular, it shows that competitive financial contracts can result in excessive borrowing ex ante and excessive volatility ex post. Even though, from a...
Persistent link: https://www.econbiz.de/10012773218
We have constructed a simple two-sector model of the demand for housing and corporate capital. An increase in the inflation rate, with and with- out an increase in the risk premium on equities, was then simulated with a number of model variants. The model and simulation experiments illustrate...
Persistent link: https://www.econbiz.de/10012774619
We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …
Persistent link: https://www.econbiz.de/10012776954
Feedback from stock prices to cash flows occurs because information revealed by firms' stock prices influences the actions of competitors. We explore the implications of feedback within a noisy rational expectations setting with incumbent publicly traded firms and privately held new entrants. In...
Persistent link: https://www.econbiz.de/10013076911
We study how investors' preferences for robustness influence corporate investment, financing, and compensation … ambiguity aversion lowers Tobin's q; the average investment, and investment volatility. The entrepreneur values the project at …
Persistent link: https://www.econbiz.de/10013405093
variety of tests for world financial capital market integration ranging from the correlation of saving and investment …
Persistent link: https://www.econbiz.de/10013231239
wealth and investment in health. Financial literacy is also correlated with wealth though it appears to be a weaker predictor … of sensitivity to framing in investment decisions. Policymakers interested in enhancing retirement wellbeing would do …
Persistent link: https://www.econbiz.de/10013130966