ambiguity becomes optimal if there is a high risk that more transparency will lead to coordination failures …How do public and private information affect equilibrium allocations and social welfare in economies with investment … complementarities? And what is the optimal transparency in the information conveyed, for example, by economic statistics, policy …

expectations regarding endogenous outcomes can emerge as a purely self-fulfilling equilibrium property when investment choices are … significant heterogeneity in real and financial investment choices, even in the absence of any heterogeneity in individual … fluctuations in aggregate investment and asset prices, including fluctuations that are smoother than those often associated with …

procyclical return but also a higher liquidity risk. Under complete financial markets, long-term investment is countercyclical …We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …

The arrival of new, unfamiliar, investment opportunities is often associated with "exuberant" movements in asset prices … signals about the profitability of the new investment opportunities, and vice versa. In this paper, we study how such …