Narrow search
Showing 1 - 10 of 6,869
Cover Image
Leverage Dynamics and Financial Flexibility
Bolton, Patrick - 2020
We develop a q theory of investment with endogenous leverage, payout, hedging, and risk-taking dynamics. The key … seeks to preserve its financial flexibility by prudently managing its leverage and investment. Paradoxically, it is the high …
Persistent link: https://www.econbiz.de/10012479326
Cover Image
Investment Under Uncertainty and the Value of Real and Financial Flexibility
Bolton, Patrick - 2014
alter the standard real options results, with the financial flexibility conferred by internal funds acting as a complement …, and at times as a substitute, to the real flexibility given by the optimal timing of investment. We show that: 1) the … be convex in liquidity) due to the interaction between financial and real (growth/abandonment) flexibility; 3) with …
Persistent link: https://www.econbiz.de/10012458055
Cover Image
Market Design in Cap and Trade Programs : Permit Validity and Compliance Timing
Holland, Stephen P. - 2012
Cap and trade programs have considerable heterogeneity in permit validity and compliance timing. For example, permits have different validity across time (e.g., banking, borrowing, and seasons) and space (e.g., zonal restrictions), and compliance timing can be annual, in overlapping cycles, or...
Persistent link: https://www.econbiz.de/10012460561
Cover Image
Intermediaries in International Trade : Direct versus indirect modes of export
Bernard, Andrew B. - 2011
This paper examines the factors that give rise to intermediaries in exporting and explores the implications for trade volumes. Export intermediaries such as wholesalers serve different markets and export different products than manufacturing exporters. In particular, high market-specific fixed...
Persistent link: https://www.econbiz.de/10012460946
Cover Image
On the Connections between Intertemporal and Intra-temporal Trades
Ju, Jiandong - 2011
This paper develops a new theory of international economics by introducing Heckscher-Ohlin features of intra … account towards its long-run equilibrium. We present empirical evidence consistent with the theory …
Persistent link: https://www.econbiz.de/10012461109
Cover Image
Skewness and Time-Varying Second Moments in a Nonlinear Production Network : Theory and Evidence
Dew-Becker, Ian; Tahbaz-Salehi, Alireza; Vedolin, Andrea - National Bureau of Economic Research - 2021
This paper studies asymmetry in economic activity over the business cycle. It develops a tractable multisector model of the economy in which complementarity across inputs causes aggregate activity to be left skewed with countercyclical volatility. We then examine implications of the model...
Persistent link: https://www.econbiz.de/10012696408
Cover Image
Errors in Probabilistic Reasoning and Judgment Biases
Benjamin, Daniel J. - 2018
modern behavioral economics. This chapter reviews theory and evidence on this topic, with the goal of facilitating more … processes, biases in belief updating, the representativeness heuristic as a possible unifying theory, and interactions between …
Persistent link: https://www.econbiz.de/10012480852
Cover Image
Forecasts in a Slightly Misspecified Finite Order VAR
Müller, Ulrich K. - 2011
We propose a Bayesian procedure for exploiting small, possibly long-lag linear predictability in the innovations of a finite order autoregression. We model the innovations as having a log-spectral density that is a continuous mean-zero Gaussian process of order 1/√T. This local embedding makes...
Persistent link: https://www.econbiz.de/10012461943
Cover Image
Fat Tails, Thin Tails, and Climate Change Policy
Pindyck, Robert S. - 2010
Climate policy is complicated by the considerable compounded uncertainties over the costs and benefits of abatement. We don't even know the probability distributions for future temperatures and impacts, making cost-benefit analysis based on expected values challenging to say the least. There are...
Persistent link: https://www.econbiz.de/10012462303
Cover Image
GHG Targets as Insurance Against Catastrophic Climate Damages
Weitzman, Martin L. - 2010
A critical issue in climate-change economics is the specification of the so-called "damages function" and its interaction with the unknown uncertainty of catastrophic outcomes. This paper asks how much we might be misled by our economic assessment of climate change when we employ a conventional...
Persistent link: https://www.econbiz.de/10012462520