In this paper we empirically test the recent lender-based theory for the use of collateral in bank lending. Based on a proprietary dataset of loan contracts written by a local bank in competitive credit markets, we use the physical proximity between borrowers and the lending branch of the bank...

Keynes had a profound influence on Prebisch in terms of the diagnosis about the main failures of market economies and the need to pursue pro-active and anti-cyclical policies. However, Prebisch was critical of some aspects of Keynes' General Theory of Employment, Interest and Money, in...

Capital structure is an important aspect of financial management however the influence of macroeconomic factors in the determination of capital structure is to some extent under-researched. This article analyzes the influence of the macro economic factors on the capital structure of selected...

The main objective of this study is to investigate the effect of interest rate, inflation rate, and GDP on real economic growth in Jordan over the period 2000-2010. Unit root test (Augmented Dickey-Fuller test) has been exploited to check the integration order of the variables. Acointegration...

Champions of sustainable growth often call for more durable production technologies with less capital depreciation. As investment in more durable capital is encouraged by lower interest rates, we investigate whether policy makers can steer the economy towards a path with low interest rates in...