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This paper develops an open economy portfolio balance model with endogenous asset supply. Domestic producers finance capital goods through credit and bonds in accordance with debt capital costs as well as through equity assets. Private households hold a portfolio of domestic and foreign assets,...
Persistent link: https://www.econbiz.de/10009161358
the current predicament. -- financial crisis ; investment ; monetary and fiscal policies …
Persistent link: https://www.econbiz.de/10009501890
To understand and appreciate the crucial role privates' investment plays in developing economies towards it sustainable …' Investment in developing countries, however narrowed the study on the economy of Ghana for the hypothetical test. For this very … reason, the study sought to establish an empirical evidence between corporate tax and it impacts on private investment using …
Persistent link: https://www.econbiz.de/10012891904
We study how financial heterogeneity determines firm-level investment responses to monetary policy shocks. In Compustat … lumpy debt significantly affects the responses of firm investment to monetary policy shocks: firms who hold debt, hold more … model with investment, long-term and short-term debt, and default risk to interpret these facts. In the model, firms with …
Persistent link: https://www.econbiz.de/10012851397
We find a significant increase in sensitivities of firm-level investment to monetary policy changes after interstate … investment response to monetary policy shocks is amplified …
Persistent link: https://www.econbiz.de/10012934417
) to the monetary policy. I find that SOEs’ investment declines by 5% - 12% more than nonSOEs after a 100 basis point … credit spread of SOEs to nonSOEs, which further slows down the investment of SOEs compared to nonSOEs …
Persistent link: https://www.econbiz.de/10013215899
firms' investment is funded using financial markets. I then construct a dynamic equilibrium model that matches these … of financial assets, directing funds towards investment opportunities, and charge an intermediation spread to cover their … investment volatility …
Persistent link: https://www.econbiz.de/10013038047
We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … evidence, and quantify the relevance for monetary transmission to aggregate investment …
Persistent link: https://www.econbiz.de/10013210051
and suppresses investment, thus resulting into constrained inefficient equilibria. Finally, we show how, in the presence …
Persistent link: https://www.econbiz.de/10013323379
empirical analysis showing that terms-of-trade and saving/investment behaviour seem to have driven the euro exchange rate over …
Persistent link: https://www.econbiz.de/10012446955