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Based on a dynamic open-economy macroeconomic model, this paper analyzes the motive for foreign reserve accumulation in fast-growing emerging economies. The demand for foreign reserves stems from the interaction between productivity growth and underdevelopment of the domestic financial market....
Persistent link: https://www.econbiz.de/10013012528
uncertainty, firms that are credit constrained switch the composition of investment by reducing productivity-enhancing investment …
Persistent link: https://www.econbiz.de/10011634332
This paper examines the impact of the COVID-19 pandemic on gross fixed capital formation across the euro area. The empirical analysis suggests that the intensity of the lockdown measures to contain the spread of the virus and the country-specific structure of the economy along with other...
Persistent link: https://www.econbiz.de/10013347704
formulate a model of financing. New Keynesian theory emphasizes that a firm’s net worth influences investment decisions and … banks lending reaction to the net worth ratio is more elastic than investment reaction. When the steady state is the saddle …
Persistent link: https://www.econbiz.de/10009783369
supposed drivers of imbalances in the build-up to the Great Recession: unequal developments in investment, competitiveness and …
Persistent link: https://www.econbiz.de/10013337982
This paper analyses the impact of exchange rate uncertainty upon the pattern of investment in different exchange rate … exchange rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending …
Persistent link: https://www.econbiz.de/10011400788
In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since … investment research. For example, not including factor prices in investment models may seriously affect the model outco! mes … can explain to a large extent why empirical estimates of the investment-uncertainty relationship differ. …
Persistent link: https://www.econbiz.de/10011349194
In this paper we use balance-sheet data and information on bankruptcy to study the relationship between investment …-2011, which also allows us to study the impact of the 2008 crisis on Czech companies. Using investment-cash flow sensitivity to … significant impact on the investment rate. By taking a closer look at individual subsamples we reveal that the existence of …
Persistent link: https://www.econbiz.de/10010358370
We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
Persistent link: https://www.econbiz.de/10011623466
The investment takes the form of sums of money spent for the acquisition of capital goods, changes in business … method of investment's calculation and to determine the factors of influence. In the first part, the investment is analyzed …
Persistent link: https://www.econbiz.de/10012056893