Filson (2001) uses industry-level data on firm numbers, price, quantity, and quality along with an equilibrium model of industry evolution to estimate the nature and effects of quality and cost improvement in the personal computer industry and four other new industries. This paper studies the...

This paper incorporates the cost of adjustment between observed and optimal leverage in explaining the variation in firm's equity or bank-debt financing investments. Using a dynamic adjustment approach identifies the determinants to capital structure between different financial systems. In...