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The confluence of three trends in the U.S. residential housing market---rising home prices, declining interest rates, and near-frictionless refinancing opportunities---led to vastly increased systemic risk in the financial system. Individually, each of these trends is benign, but when they occur...
Persistent link: https://www.econbiz.de/10012463288
Persistent link: https://www.econbiz.de/10003846817
The literature on public goods has shown that efficient outcomes are impossible if participation constraints have to be respected. This paper addresses the question whether they should be imposed. It asks under what conditions efficiency considerations justify that individuals are forced to pay...
Persistent link: https://www.econbiz.de/10008824513
access to capital tends to stall them. -- Financing Barriers ; Energy Efficiency ; Solar PV ; Energy Investments … financing scheme for renewable and energy efficiency deployment. Financing barriers represent a notable obstacle for energy … and the lack of guarantees, are key issues related to financing barriers. Implementing a policy such as PACE - Property …
Persistent link: https://www.econbiz.de/10009506374
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present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets …
Persistent link: https://www.econbiz.de/10012480505
Harvey (2001) find that 74% of their survey firms use the CAPM for capital budgeting. We provide an explanation for these two … capital. Following McDonald and Siegel (1986), we argue that the hurdle premium depends on the value of the option to defer … value firms, even though they have a lower cost of capital …
Persistent link: https://www.econbiz.de/10012461887
on the financing of 1157 worldwide private equity deals from 1980 to 2008. Buyout leverage is cross-sectionally unrelated … availability of financing impacts booms and busts in the private equity market, and that agency problems between private equity … funds and their investors can affect buyout capital structures …
Persistent link: https://www.econbiz.de/10012462699
We exploit time variation in the degree of development of local credit markets and matched employer-employee data to assess the role of the firm as an internal credit market. In less developed local credit markets firms can offer a flatter wage-tenure profile than firms in more developed credit...
Persistent link: https://www.econbiz.de/10012462727
constrained sector absorbs less and less capital, the real interest rate in the economy declines. Other sectors that compete for … the same inputs (including capital) thus experience lower costs, which boosts investment, output, and profits, reflecting …
Persistent link: https://www.econbiz.de/10012462744