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lending, financial saving and physical investment it will be shown that this is a nonsense statement. The theory behind it … accounting can clarify the nature of economic phenomena and be an important building block for economic theory. The paper will … argue that there is much confusion about key macroeconomic concepts like saving, investment and finance. This confusion is …
Persistent link: https://www.econbiz.de/10009672542
The paper develops a model of firm´s investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm´s investment. Firm´s investment is an increasing function of the firm´s marginal q …, however the investment function is characterized by an upper bound that depends on the firm´s borrowing capabilities. The firm …
Persistent link: https://www.econbiz.de/10013132124
The paper develops a model of firm's investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm's investment. Firm's investment is an increasing function of the firm's marginal q …, however the investment function is characterized by an upper bound that depends on the firm's borrowing capabilities. The firm …
Persistent link: https://www.econbiz.de/10013132415
The empirical performance of the Q theory of investment can be significantly improved by simultaneously considering the … with the Q theory. The results show that there is a positive, stable medium-to-long-run relationship between investment and … time- and the frequency-varying features of the investment-Q relationship. Using continuous wavelet tools, I assess the …
Persistent link: https://www.econbiz.de/10012901123
While investment in most sectors declines in response to a contractionary monetary policy shock, investment in the …
Persistent link: https://www.econbiz.de/10013213795
This article aims to contribute to the Post Keynesian theory of the firm by refining the long run financial frontier … account for investment volatilities, leading to Minsky’s insight into financial instability …
Persistent link: https://www.econbiz.de/10013231013
Wealth inequality is an important matter for economic theory and policy. Ongoing debates have been discussing recent …; and compound interest structure. We provide mathematical proof that accumulated financial investment returns involve ever … investment game that individual investors do repeatedly play through time …
Persistent link: https://www.econbiz.de/10014111188
supply of credit and thus more funds to be invested by firms for investment. The paper shows that proponents of this theory …The paper presents a critique of loanable funds theory by using simple accounting relationships. It is shown that many … economists identify saving and the credit supply by interpreting the macroeconomic saving-investment identity as a budget …
Persistent link: https://www.econbiz.de/10010201646
demand, i.e. investment, consumption and net exports. Since increasing shareholder power and shareholder value orientation of … of financialisation in the context of the postKeynesian theory of the firm and explain the other channels from there. An … important result is the emergence of 'profits without investment' demand and growth regimes, for which we point out the …
Persistent link: https://www.econbiz.de/10014490639
macroeconomic outcomes such as aggregate consumption, investment, and output. Speculation in the boom years reduces asset prices …
Persistent link: https://www.econbiz.de/10013238441