We argue that the competition for inelastically supplied capital results in a strong transmission of interest rates to the price of capital, weakening the conventional negative effect of interest rates on investment. We study this effect by exploiting geographic heterogeneity in the cash flow...

Employees often supply labor to firms first and then get paid later. This paper shows that such implicit labor trade credits or short-term borrowing are important for both firms and employees. Using state payday frequency reforms between the 1860s and the 1930s, I find that firms decreased in...

In this paper we present a theoretical framework for studying coherent acceptability indices in a dynamic setup. We study dynamic coherent acceptability indices and dynamic coherent risk measures, and we establish a duality between them. We derive a representation theorem for dynamic coherent...