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Liquidity and Inefficient Investment
Hart, Oliver D. - 2013
capital. We show that the competitive equilibrium is constrained inefficient, leading to too little risky investment. We also …
Persistent link: https://www.econbiz.de/10012459478
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Inefficient Investment Waves
He, Zhiguo - 2012
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 …
Persistent link: https://www.econbiz.de/10012460443
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Capital Account Liberalization : Allocative Efficiency or Animal Spirits?
Chari, Anusha - 2002
investment opportunities drive the cross-sectional variation in the post-liberalization investment increases …
Persistent link: https://www.econbiz.de/10012469806
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The Real Value of China's Stock Market
Carpenter, Jennifer N. - 2015
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 …
Persistent link: https://www.econbiz.de/10012457709
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Is There an Energy Efficiency Gap?
Allcott, Hunt - 2012
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 …
Persistent link: https://www.econbiz.de/10012460893
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Volatile Policy and Private Information : The Case of Monetary Policy
Jones, Larry E. - 1999
In this paper we study how volatility in monetary policy affects economic performance in the presence of endogenously chosen information structures. To isolate the effects produced by the interaction of uncertainty in monetary policy and (possibly) asymmetric information, we consider a model in...
Persistent link: https://www.econbiz.de/10012471724
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Quantitative Asset Pricing Implications of Endogenous Solvency Constraints
Alvarez, Fernando - 1999
We study the asset pricing implications of an economy where solvency constraints are determined to efficiently deter agents from defaulting. We present a simple example for which efficient allocations and all equilibrium elements are characterized analytically. The main model produces large...
Persistent link: https://www.econbiz.de/10012471854
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Misallocation Under Trade Liberalization
Bai, Yan - 2019
This paper incorporates firm-level distortions into a Melitz model and characterizes welfare under misallocation. We derive an analogue to the well-known ACR result in an economy with distortions. We highlight a channel through which trade can reduce welfare by exacerbating misallocation. A key...
Persistent link: https://www.econbiz.de/10012480133
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Rationing the Commons
Ryan, Nicholas - 2020
Common resources may be managed with inefficient policies for the sake of equity. We study how rationing the commons shapes the efficiency and equity of resource use, in the context of agricultural groundwater use in Rajasthan, India. We find that rationing binds on input use, such that farmers,...
Persistent link: https://www.econbiz.de/10012481328
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Input-Output Networks and Misallocation
Hang, Jing - 2020
This paper develops a framework for studying the macroeconomic costs of resource misallocation. The framework enables the assessment of the conditions under which the existing estimates in the misallocation literature, which are largely based on a value-added production structure and ignore...
Persistent link: https://www.econbiz.de/10012482203