We study how adverse selection distorts equilibrium investment allocations in a Walrasian credit market with two …-sided heterogeneity. Representative investor and partial equilibrium economies are special cases where investment allocations are … trade and investment allocations below perfect information levels. The degree of heterogeneity between informed agents' type …

Investment opportunities are plenty, but not all are profitable. This papers seeks to clarify the need to make a proper …. Efficient investment involves the use of both fundamental analysis and technical analysis …

investment, and output subsidies at the production stage. While these measures stimulate entrepreneurship, only cost …

investment, and output subsidies at the production stage. While these measures stimulate entrepreneurshiip, only cost …

, progressive taxation as well as investment and output subsidies to the entrepreneurial sector. …

This paper studies the efficiency of competitive equilibria in economies where the expansion of investment is … aggregate investment, thereby justifying regulatory intervention in markets for securitized assets. We examine the effectiveness …

I show that, due to imperfect risk sharing, aggregate shocks to uncertainty about idiosyncratic return on investment …, with an idiosyncratic uncertainty shock, investment in physical capital can remain low even after the stock market and firm … idiosyncratic investment risk can explain, qualitatively, the aftermath of financial panics -- elevated risk premia, a sharp and …

, which enables increased leverage and investment. In the absence of frictions in the securitization process, we show that the … be constrained inefficient due to the existence of a pecuniary externality that can result in over or under-investment …. We examine policies to correct over-investment and find that a leverage ratio restriction generates a Pareto improvement …

During the U.S. Great Recession, investment declined more among firms whose indebtedness increased. Instead of investing …

Financial innovations that change how promises are collateralized can affect investment, even in the absence of any … change in fundamentals. In C-models, the ability to leverage an asset always generates over-investment compared to Arrow … Debreu. The introduction of CDS always leads to under-investment with respect to Arrow Debreu, and in some cases even …