Investment portfolios that include private assets can gain a number of potential advantages, including diversification, enhanced returns and less risk. Moreover, there is evidence of a growing number of private asset investment opportunities that can have a positive sustainable impact. However,...

This paper examines environmental, social, and governance (ESG) performance around seasoned equity offerings (SEOs). A firm may improve ESG performance prior to SEOs to the extent that it believes that investors will be more favorable to firms with better ESG performance (window-dressing...

We analyze the role of trade credit and financial frictions in the propagation of international trade shocks along the supply chain. First, we show empirically that exposure to import competition from China increased the use of trade credit in the U.S. Then, we use a multi-country input-output...

We develop a theoretical model that explains the relationship between credit constraints and economic growth in the context of a three-sector economy, including an “extractive” sector. The model belongs in the structuralist tradition and it is inspired by the Colombian economy. In contrast...

The fall of labor’s share of GDP many countriesin recent decades is well documented. Existing empirical studies are focusing predominantly on advanced economies and the decrease in the relative cost of capital, which conceals a heterogeneous evolution across developing economies.By exploiting...

This paper analytically characterizes an infinite-horizon open economy under a stock collateral constraint, whereby borrowing is limited by the value of capital assets available. The model that is considered allows for general subjective discounting and fully variable productivity. Four main...

This study fills an important gap in the literature by providing causal evidence of the impact of relaxing financial constraints on corporate social responsibility (CSR). To isolate this causal link, we examine the enactment of antirecharacterization laws in some U.S. states, an exogenous shock...

I study decentralization of optimal allocations in an endowment OLG economy where private agents face endogenous borrowing constraints. Lenders constrain credit because of limited commitment of borrowers: they can declare bankruptcy and only lose the ability to make savings for retirement in the...