Search Results - subject:"liquidity constraints"

Equilibria in Matching Markets with Soft and Hard Liquidity Constraints

Herings, Peter Jean-Jacques; Zhou, Yu - 2021

We consider a matching with contracts model in the presence of liquidity constraints on the buyers side. Liquidity … constraints can be either soft or hard. A convergent sequence of economies with increasingly stringent soft liquidity constraints … is an economy with hard liquidity constraints at the limit. The limit of a corresponding convergent sequence of …

Persistent link: https://www.econbiz.de/10013211523

Borrowing Constraints and the Returns to Schooling

Cameron, Stephen V.; Taber, Christopher - 2021

To a large degree, the expansion of student aid programs to potential college students over the past 25 years in the United States has been based on the presumption that borrowing constraints present an obstacle to obtaining a college education. Economists and sociologists studying schooling...

Persistent link: https://www.econbiz.de/10013212574

Financial Constraints and Risk Aversion : A Tax-based Theory of Rising Industrial Concentration

Huang, Qiushi - 2021

I propose a theory that shows for financially constrained firms, a lower tax rate on cash returns can cause firms to hoard more cash and increase their investment in risky projects. As a result, industry sales becomes increasingly concentrated in top firms. The model has three central...

Persistent link: https://www.econbiz.de/10013213352

Transitory Earnings Shocks, Financial Constraints and Price Momentum

Pazaj, Elisa - 2021

I examine the separate roles of persistent and transitory earnings shocks in explaining price momentum. I find that transitory shocks have significant explanatory power, suggesting financial constraints may be important for momentum firms. In a liquidity management model that accounts for both...

Persistent link: https://www.econbiz.de/10013323406

Desperate House Sellers : Distress Among Developers

Van Straelen, Eileen - 2021

Using granular data on home builder housing developments from the 2006-09 housing crisis, I show that builders spread house price shocks across geographically distinct projects via their internal capital markets. Builders who experience losses in one area subsequently sell homes in unaffected...

Persistent link: https://www.econbiz.de/10013323435

Bargaining Under Liquidity Constraints : Nash vs. Kalai in the Laboratory

Duffy, John; Lebeau, Lucie; Puzzello, Daniela - 2021

we find to be equal to 1/2. Then, imposing liquidity constraints on buyers, we find strong evidence in support of the …

Persistent link: https://www.econbiz.de/10013323737

Does managerial ability affect corporate financial constraints? Evidence from China

Huang, Qiubin; Xiong, Mengyuan; Ming, Xiao - 2021

This paper examines the impact of managerial ability on corporate financial constraints. Based on a large sample of Chinese listed companies during the 2007-2019 period, we find that managerial ability is negatively associated with corporate financial constraints. We also find that managerial...

Persistent link: https://www.econbiz.de/10013321543

Credit Pricing for Financing of Small and Micro Enterprises Under Government Credit Enhancement : Leverage Effect or Credit Constraint Effect

Jin, Xuejun; Ke, Yuanyuan; Chen, Xiaohui - 2021

The pricing of financing credit for SMEs under government credit enhancement is an important pattern to solve the financing difficulties of SMEs. Using the data of SMEs credit guarantee fund from Wenzhou, this paper studies the cost of credit under government credit enhancement from three...

Persistent link: https://www.econbiz.de/10013223416

Bargaining under liquidity constraints : Nash vs. Kalai in the laboratory

Duffy, John; Lebeau, Lucie; Puzzello, Daniela - 2021

Persistent link: https://www.econbiz.de/10012744935

Liquidity or capital? : the impacts of easing credit constraints in rural Mexico

Aparicio, Gabriela; Bobić, Vida; De Olloqui, Fernando; … - 2021

This paper evaluates the effectiveness of easing credit constraints for rural producers in Mexico through loans provided by a national public development finance institution (DFI). In contrast to most of the existing literature, the study focuses on the effect of medium-sized loans over a two-...

Persistent link: https://www.econbiz.de/10012581494