asset side and equity capital as well as debt on the liabilities side. A number of findings emerge when simulating the model … higher levels of leverage lead to a greater inequality among agents. Furthermore, greater leverage increases the frequency of … bankruptcies and systemic events. Credit frictions, which we define as the stickiness of debt adjustments, are able to explain a …

We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The … announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R … social welfare than the announcement of the tax rate or the standard emission taxation if the marginal damage of emissions …

asset side and equity capital as well as debt on the liabilities side. The introduction of balance sheets and debt into an … emerges and that higher levels of leverage lead to a greater inequality among agents. When further analyzing the relationship … between leverage and balance sheets, we observe that decreasing credit frictions result in an increasingly procyclical …

investment but also their tax-sensitivity. An empirical investigation of leverage and investment reported for affiliates of … multinationals. A theoretical analysis shows that the imposition of such rules tends to affect not only the leverage and the level of …. While Thin-Capitalization rules are found to be effective in restricting debt finance, investment is found to be more …