trigger allocative inefficiency and liquidity crises. Entrepreneurs do not internalize the negative impact of their investment … a non-monotonic effect on expected returns on investment and social welfare. An increase in the quality of public … information has redistributive effects on welfare as entrepreneurs gain and financiers lose. Investment restrictions and targeted …

We develop a dynamic model of trading and investment with limited aggregate resources to study investment cycles …. Unverifiable idiosyncratic investment opportunities imply market prices to play a role of rent distribution, distorting private … investment incentives from a social point of view. This distortion is price-dependent, leading to two-sided inefficient …

This paper proposes a novel channel, i.e., within-firm intangible-tangible investment composition, through which … tangibles and the unit-cost differential, which triggers within-firm investment reallocation. It turns out that allocative … domestic investment, the larger the financial inflows, the more likely the productivity eventually exceeds its initial level …

We examine how mark-to-market accounting affects the investment decisions of managers with reputation concerns … conflicting private information and would damage their reputation. This effect can lead to inefficient investment decisions and …

We study externality costs of capital investment under limited commitment. We solve for the constrained efficient … allocation with a limited commitment environment and find positive externality costs of capital investment provided that full …-risk-sharing is not feasible. In a decentralized version of limited commitment environment, a one unit increase of capital investment …

. Financially constrained firms decide on the level of their liquid resources facing cash-flow shocks and time-varying investment … liquidity and in investment even if technology remains constant, consistently with firm-level and aggregate evidence. These … investment waves are not constrained efficient in general, because the social and private value of liquidity differs. The …

In this paper we introduce the notion of themes as an additional investment dimension beyond asset classes, regions …

capital. We show that the competitive equilibrium is constrained inefficient, leading to too little risky investment. We also …