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total expected costs of holding debt and of debt's reduction policies. We model this problem as a singular stochastic …
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We find that the low average returns to firms with high asset growth are consistent with two key implications of models of diagnostic investor expectations (e.g., Bordalo, Gennaioli, La Porta, and Shleifer, 2019) that formalize the representativeness heuristic of Kahneman and Tversky (1972)....
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-state stochastic process. The underlying trend growth rate is an unobservable random walk hidden by noisy transitory shocks and …
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-state stochastic process. The underlying trend growth rate is an unobservable random walk hidden by noisy transitory shocks and …
Persistent link: https://www.econbiz.de/10013104998
Stochastic multiplicative dynamics characterize many complex natural phenomena such as selection and mutation in … stochastic growth rates has been shown to be the critical driver of diversity dynamics and of the emergence of wealth inequality …
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