Showing 1 - 6 of 6
"A salient feature of the recent U.S. recession is that output and employment have declined more in regions (states, counties) where household leverage had increased more during the credit boom. This pattern is difficult to explain with standard models of financing frictions. We propose a theory...
Persistent link: https://www.econbiz.de/10009009209
Persistent link: https://www.econbiz.de/10003588001
Persistent link: https://www.econbiz.de/10003839845
We study investment options in a dynamic agency model. Moral hazard creates an option to wait and agency conflicts affect the timing of investment. The model sheds light, theoretically and quantitatively, on the evolution of firms' dynamics, in particular the decline of the failure rate and the...
Persistent link: https://www.econbiz.de/10012465063
I study the allocation of human capital in an economy with production externalities, financial constraints and career choices. Agents choose to become entrepreneurs, workers or financiers. Entrepreneurship has positive externalities, but innovators face borrowing constraints and require the...
Persistent link: https://www.econbiz.de/10012465087
The share of finance in U.S. GDP has been multiplied by more than three over the postwar period. I argue, using … evidence and theory, that corporate finance is a key factor behind this evolution. Inside the finance industry, credit … intermediation and corporate finance are more important than globalization, increased trading, or the development of mutual funds for …
Persistent link: https://www.econbiz.de/10012465229