Explicit Lagrange Multiplier for Firms Facing a Debt Ceiling Constraint

This paper provides the explicit expression of investment facing a binding debt ceiling and the explicit expression of the Lagrange multipliers related to the binding debt ceiling constraint. This result allows to check for misspecification of the parameterizations of these Lagrange multipliers used in Euler investment equations tests during the 1990's.

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Year of publication:	2000
Authors:	Chatelain, Jean-Bernard
Institutions:	HAL
Subject:	Investment \| Credit Rationing

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Extent:	application/pdf
Series:	Post-Print.
Type of publication:	Book / Working Paper
Notes:	View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00119408 Published, Economics Letters, 2000, 67, 2, 153-158
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010750720