We develop a dynamic model of trading and investment with limited aggregate resources to study investment cycles …. Unverifiable idiosyncratic investment opportunities imply market prices to play a role of rent distribution, distorting private … investment incentives from a social point of view. This distortion is price-dependent, leading to two-sided inefficient …

capital. We show that the competitive equilibrium is constrained inefficient, leading to too little risky investment. We also …

negative externalities and save money. This overview paper presents a simple model of investment in energy-using capital stock … profitable unexploited investment opportunities is much smaller than engineering-accounting studies suggest. Finally, there is …

remain so for many years. The efficiency of its financial system in allocating capital to investment will be important to … last two decades is highly correlated with that of corporate investment efficiency. China's stock market appears to be … access it. Yet this high alpha amounts to an inflated cost of equity capital, constraining the investment of China's smaller …

investment opportunities drive the cross-sectional variation in the post-liberalization investment increases …

are allocated towards the most inefficient divisions. The distortion is greater the more diverse are the investment …-1993. We find that i) diversified firms mis-allocate investment funds; ii) the extent of mis-allocation is positively related … to the diversity of the investment opportunities across divisions; iii) the discount at which these diversified firms …