Wang, Pengfei; Wen, Yi - Federal Reserve Bank of St. Louis - 2009
heterogeneous �rms use intrinsically worthless
assets to improve resource allocation and investment e� ciency when �nancial markets … values, in our model the probability of capital investment is endogenously determined by
�rms rather than exogenously �xed … in Krusell and Smith, 1998) despite a continuum of
heterogeneous agents with irreversible investment and borrowing …