This paper analyzes the role of liquidity constraints in the formation of new entrepreneurial enterprises. The basic … conditional amounts of depreciable assets, ceteris paribus. If so, liquidity constraints are likely to be present. To be … the amount of capital employed. These findings are consistent with the presence of liquidity constraints …

labor income is a random walk, it is optimal for impatient liquidity constrained consumers simply to consume their incomes …. As a consequence, a liquidity constrained representative agent cannot generate aggregate U.S. saving behavior if that … processes do not resemble their average, and it is possible to construct a model of microeconomic saving under liquidity …

consistent with the view that firms choose liquidity levels to insure against poor macroeconomic conditions …

downturn, as well as why industry productivity falls. The paper highlights an adverse consequence of high anticipated liquidity …, working through leverage, on the economy's access to finance and productivity when that liquidity fails to materialize. It … also suggests that higher anticipated liquidity can tighten credit constraints, instead of alleviating them …

that liquidity constrained firms increased prices in 2008, while their unconstrained counterparts cut prices. We develop a …' decisions to preserve internal liquidity and avoid accessing external finance, factors that strengthen the countercyclical …

We study liquidity transformation in mutual funds using a novel data set on their cash holdings. To provide investors … with claims that are more liquid than the underlying assets, funds engage in substantial liquidity management. Specifically … underlying portfolio assets. This is particularly true for funds with illiquid assets and at times of low market liquidity. We …

Using data on exogenous liquidity losses generated by the fraud and failure of a cash-in-transit firm, we demonstrate a … causal impact on firms' trade credit usage. We find that firms manage liquidity shortfalls by increasing the amount of drawn … economically important sources of reserve liquidity. The underlying mechanism in trade credit adjustments is in part due to shifts …