firms' investment decisions. We characterize the conditions under which fire sales occur in equilibrium and their … consequences on firms' investment decisions. We also show that endogenous financial crises may arise in this environment, with … restore the efficiency of equilibria. -- illiquid markets ; default ; incomplete markets ; price distortions ; inefficient …

firms in making their investment decisions. We use a revealed preference approach that relies on the pattern of investment … spending - combined with investment theory - to estimate the discount rates used by managers. The standard story predicts that … firms with high stock prices and good investment opportunities should have discount rates that do not differ systematically …

explaining the consumption path after a Marginal Efficiency of Investment shock. We use an otherwise standard medium-scale New …

We analyse the effects of investment decisions and firms internal organisation on the efficiency and stability of …. We show that often stable mergers do not lead to more e.ciency and may even lead to efficiency losses. These mergers lead … to lower total welfare, suggesting that a regulator should be careful in assuming that possible efficiency gains of a …

This paper examines novel survey evidence on firms’ beliefs about macroeconomic tail risk and their role in investment … severe macroeconomic downturn substantially lowers investment, particularly for firms that report higher exposure to the … event. I attribute less than half of the investment response to changes in firms' subjective first and second moments. In a …