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Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income … countries with insufficiently developed capital markets. This paper analyzes the problem of channeling domestic savings into … productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio …
Persistent link: https://www.econbiz.de/10012752887
Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income … countries with insufficiently developed capital markets. This paper analyzes the problem of channeling domestic savings into … productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio …
Persistent link: https://www.econbiz.de/10012472477
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In an overlapping generations maximization framework with consumers, whose information on uncertain future income realizations is front-loaded, a closed form aggregate consumption function with CRRA preferences is derived. To have a closed form solution we assume that consumers solve their...
Persistent link: https://www.econbiz.de/10003484116
derive the optimal savings distortions necessary for constrained optimality. Our recursive preferences are homogeneous and …
Persistent link: https://www.econbiz.de/10003605156