Search Results - subject:"Liquidity constraints"

Browne, Frank; Cronin, David - In: Credit and Capital Markets – Kredit und Kapital 51 (2018) 3, pp. 367-388

Models of inflation usually have monetary policy affecting the economy through either an interest rate channel or a monetary/credit quantity channel but not through both simultaneously. It is argued here that policy is transmitted via two distinct types of agents – those that are and that are...

Persistent link: https://www.econbiz.de/10014523889

Monetary policy when households have debt : new evidence on the transmission mechanism

Cloyne, James; Ferreira Mayorga, Clodomiro; Surico, Paolo - 2018

¿Qué efecto tiene la política monetaria sobre el consumo? Mediante el uso de información a nivel de hogar en el Reino Unido y Estados Unidos, este trabajo muestra que la mayor parte de la dinámica del consumo agregado después de un cambio en los tipos de interés a corto plazo, viene...

Persistent link: https://www.econbiz.de/10012532137

Asset pricing and the propagation of macroeconomic shocks

Jaccard, Ivan - 2018

This paper considers the implications of habit formation and financial frictions for the propagation of macroeconomic shocks. In a model that is capable of matching asset pricing moments, a short-lived shock that destroys a small fraction of the economy's stock of pledgeable collateral generates...

Persistent link: https://www.econbiz.de/10011916854

Liquidity Constraints and the Value of Insurance

Ericson, Keith M. Marzilli - 2018

wealth models. We develop a consumption-utility model that shows how liquidity constraints and borrowing costs impact the … value of insurance. Liquidity constraints generate high insurance demand when premiums are due smoothly, sometimes leading … liquidity constraints. We show empirical insurance analysis using the standard model can generate misleading counterfactuals and …

Persistent link: https://www.econbiz.de/10012911483

Macroeconomic Conditions, Financial Constraints, and Firms’ Financing Decisions

Chang, Xin (Simba) - 2018

We examine how time-varying macroeconomic conditions affect firms' financing decisions. A principal components decomposition of several macroeconomic variables characterizes three phases of the business cycle relative to recessions: early recovery, robust recovery, and economic crest; a fourth...

Persistent link: https://www.econbiz.de/10012911987

Are Financially Constrained Firms More Prone to Financial Restatements?

Bowen, Robert M. - 2018

We examine the association between firms' financial constraints and potentially value- destroying financial restatements. How financial constraints affect managerial behavior has been labeled as a core issue in accounting and finance. Ex-ante, the nature of the relation between financial...

Persistent link: https://www.econbiz.de/10012915038

From Loans to Labor : Access to Credit, Entrepreneurship, and Child Labor

Lakdawala, Leah - 2018

This paper seeks to understand household business decisions in response to increased credit access in an environment with multiple market failures. A simple model suggests that households at certain wealth thresholds might be able to overcome the fixed costs of entering entrepreneurship when...

Persistent link: https://www.econbiz.de/10012915055

Does IPO Free Small Firms from Their Debt Constraints?

de Séverac, Béatrice - 2018

This article examines the financial behavior of small and medium-sized enterprises (SME) that went public on Alternext during the years 2005-2013. The results show that growth SME's have a limited debt capacity before going public (IPO). We found evidence suggesting that these firms modify their...

Persistent link: https://www.econbiz.de/10012917545

R&D Cyclicality and Credit Constraints : Comparative Micro-Evidence from New EU Member States

Meriküll, Jaanika - 2018

The opportunity cost approach suggesting a countervailing cyclical effect between R&D and short-term investments is the subject of theoretical and empirical debate. The lack of firm-level panel data on R&D and ambiguous indicators for demand fluctuations has hindered empirical testing of...

Persistent link: https://www.econbiz.de/10012918355

Real Options, Taxes and Financial Leverage

Myers, Stewart C. - 2018

We show how to calculate the after-tax value of real options, including the value of interest tax shields on debt supported or displaced by the options. An option's “debt capacity” can be calculated from the adjusted present value (APV) and target debt ratio for the underlying asset, the...

Persistent link: https://www.econbiz.de/10012921061