Effects of government investment are studied in an estimated neoclassical growth model. The analysis focuses on two … dimensions that are critical for understanding government investment as a fiscal stimulus: implementation delays for building … public capital and expected fiscal adjustments to deficit-financed spending. Implementation delays can produce small or even …

theory of optimal capital structure it tests (i) whether corporate taxes induce subsidiary banks to raise their debt … subsidiary banks affect the intra-bank capital structure through international debt shifting. Using a novel subsidiary …

exporters of capital goods to the rest of the world. We develop a model of trsde in capital goods to assess its role spreading …

This paper uses the financial crisis of 2008 as a natural experiment to demonstrate that when measuring investment … data on U.S. firms from 1990 to 2011, it was found that the share of physical capital in assets has a strong influence on … investment-cash flow sensitivity, which decreased substantially after the crisis when banks changed their expectations about the …

credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that …

liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare … lending, efficiency and welfare significantly. The costs of high capital and liquidity requirements represent a lower bound on …

derivatives are globally systemic. Employing methodologies similar to the calculation of banks’ capital requirements against … trading book exposures, this paper assesses the sensitivity of central counterparties’ required risk buffers, or capital … central counterparties’ risk buffers, in line with recent enhancements to the capital regime for banks. …