reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for … these facts, we propose a simple model of sovereign risk in which debt can be traded in secondary markets. The model has two …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

It is well understood that investment serves as a shock absorber at the time of crisis. The duration of the drag on … investment, however, is perplexing. For the nine Asian economies we focus on in this study, average investment/GDP is about 6 … between the sustained reserve accumulation and the persistent and significantly lower levels of investment in the region. Put …

We propose an empirical implementation of the consumption-investment problem using the martingale representation … simplifies the investor's task of specifying the investment opportunity set and inherits the computational convenience of the … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using …

The investment theory, in which the expected return varies cross-sectionally with investment, expected profitability …

hourly output and hourly revenue risk-reducing benefits from the optimal choice of locational generation capacities is … and solar energy and revenue risk are computed using the actual market portfolio and the risk-adjusted expected hourly …

stress, consistent with rollover risk being an important channel influencing investment. The negative effect of firm leverage …We quantify the role of financial leverage behind the sluggish post-crisis investment performance of European firms. We … arising from sovereign risk, and aggregate demand conditions. We find that firms with higher debt levels reduce their …

. This model generates dynamic relationships between foreign capital inflows, domestic investment and domestic bank debt in … accumulation of bank debt and increasing concentration of domestic lending and investment to the anticipation of contingent …

fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal … to smooth consumption, but also domestic investment. To achieve this, they use foreign assets as a buffer stock …

choices and the valuation of fees and investors' payoffs. Increasing the investment allocation to the alpha …-generating strategy typically lowers the fund's risk-adjusted excess return due to frictions such as price pressure. When the manager is … via both management and incentive fees, we show that (i) the high-powered incentive fees encourage excessive risk taking …