A Dynamic General Equilibrium Framework of Investment with Financing Constraint /

In this paper, we provide a dynamic general equilibrium framework with an explicit investment-financing constraint. The constraint is intended as a reduced form to capture the balance sheet effects, which have been widely regarded as an important determinant of financial crises. We derive a link bet...

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Մատենագիտական մանրամասներ
Հիմնական հեղինակ: Xie, Danyang
Այլ հեղինակներ: Yuen, Chi-Wa
Ձևաչափ: Ամսագիր
Լեզու:English
Հրապարակվել է: Washington, D.C. : International Monetary Fund, 2002.
Շարք:IMF Working Papers; Working Paper ; No. 2002/041
Առցանց հասանելիություն:Full text available on IMF
Նկարագրություն
Ամփոփում:In this paper, we provide a dynamic general equilibrium framework with an explicit investment-financing constraint. The constraint is intended as a reduced form to capture the balance sheet effects, which have been widely regarded as an important determinant of financial crises. We derive a link between the value of the firm and the social welfare and we find that the value of the firm can be greater with than without the constraint. Our model also sheds light on how the effects of productivity shocks and bubbles may be amplified by the financing constraint.
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Ֆիզիկական նկարագրություն:1 online resource (22 pages)
Ձևաչափ:Mode of access: Internet
ISSN:1018-5941
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