Investment Under Financial Constraints: Theory and Tests with West German Micro Data

We present a microeconometric study of the impact of financial constraints on investment decisions of 755 quoted and unquoted West German firms over the period 1989 to 1994. The underlying theoretical model is based upon rational expectations and convex adjustment costs. The panel data estimates lead to the hypothesis that limited access to external financial funds can indeed restrain the growth of investment.

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Year of publication:	1998-02
Authors:	Funke, Michael ; Maurer, Wolf ; Siddiqui, Sikandar ; Strulik, Holger
Institutions:	Institut für Makroökonomie und Wirtschaftspolitik, Fachbereich Volkswirtschaftslehre
Subject:	Investment \| Panel Data \| Financing Policy

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Extent:	application/postscript
Series:	Quantitative Macroeconomics Working Papers.
Type of publication:	Book / Working Paper
Classification:	D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; E22 - Capital; Investment (including Inventories); Capacity ; C23 - Models with Panel Data ; G32 - Financing Policy; Capital and Ownership Structure
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005572072