consumption, portfolio allocation, financing, investment, and business exit decisions. The optimal capital structure is determined …. More risk-averse entrepreneurs default earlier, but also choose higher leverage, even though leverage makes his equity more … risky. Non-diversified entrepreneurs demand both systematic and idiosyncratic risk premium. Cash-out option and external …

We present an analytically tractable general equilibrium business cycle model that features micro-level investment … fixed cost distribution, under which lumpy investment can be important: (i) The steady-state elasticity of the adjustment …

We study how investors' preferences for robustness influence corporate investment, financing, and compensation … ambiguity aversion lowers Tobin’s q, the average investment, and investment volatility. The entrepreneur values the project at …

future corporate income tax rate raises investment and adjustment rate immediately, while an anticipated increase in the … future investment tax credit reduces investment and adjustment rate initially. Our general equilibrium analysis demonstrates …

tax policies on corporate investment and financing decisions. Facing a tax system with corporate and personal income taxes …, dividend tax and capital gains tax, a firm decides how much to invest and how to finance investment by equity or debt subject … not have long-run effects on a firm's capital formation, but have short-run effects on its investment and financial …