Watanabe, Toshio - In: Journal of economic structures : JES; the official … 2 (2013), pp. 1-18
formulate a model of financing. New Keynesian theory emphasizes that a firm’s net worth influences investment decisions and … economic instability. Our results demonstrate that a steady state can be a saddle point when the dividend rate is low and the … bank’s lending reaction to the net worth ratio is more elastic than investment reaction. When the steady state is the …