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Persistent link: https://www.econbiz.de/10003076022
The aim of this paper is to study the impact of the bankruptcy law on financing, investment, default and liquidation decisions of firms. We build a model in which the firm has the opportunity to get into debt to finance an investment whose return is stochastic. Shareholders and bondholders...
Persistent link: https://www.econbiz.de/10003549848
Persistent link: https://www.econbiz.de/10011546236
The aim of this paper is to evaluate the welfare gains from financial integration for developing and emerging market economies. To do so, we build a stochastic endogenous growth model for a small open economy that can (i) borrow from the rest of the world, (ii) invest in foreign assets, and...
Persistent link: https://www.econbiz.de/10012750592
This paper aims to measure the risk premium on French equities during 1960-92 and to evaluate how well theoretical models based on various representations of agents' preferences can explain it. Aside from the standard, time-additive utility function with constant relative risk aversion three...
Persistent link: https://www.econbiz.de/10012750615
The aim of this paper is to study the impact of bankruptcy law on financing, investment, default and liquidation decisions of firms. We build a model in which a firm can finance its investment by issuing debt. The investment is risky. Because of risk, the firm may default. The firm manager takes...
Persistent link: https://www.econbiz.de/10012708114
This paper proposes a measure of the welfare cost of volatility derived from an endogenous growth model (AK) under uncertainty extended to the case of a recursive utility function which disentangles risk aversion from intertemporal elasticity of substitution. It encompasses a direct welfare cost...
Persistent link: https://www.econbiz.de/10013317977
Persistent link: https://www.econbiz.de/10001731434
Ambitious climate policy, coupled with financial frictions, has the potential to create macrofinancial stability risk. Such stability risk may expand beyond the economy implementing climate policy, potentially catching other countries off guard. International spillovers may occur because of...
Persistent link: https://www.econbiz.de/10014469619
In this paper, we consider an economy having access to two different energy sources. The first one is coming from natural polluting resources; and second one is coming from a backstop natural resource. There are two productive sectors in the economy. The first one is dedicated to manufacturing...
Persistent link: https://www.econbiz.de/10015258872