We present a model in which banks trade toxic assets to raise funds for investment. The toxic assets generate an … investment. While the best investments are fully funded, socially efficient projects with modest payoffs are not. Investment is … and may be counterproductive as a policy for increasing investment. By allowing banks to fund investments without having …

This essay surveys the body of research that asks how the efficiency of corporate investment is influenced by problems … that the marginal return to investment in firm i is the same as the marginal return to investment in firm j? Second, do … capital budgeting process get within-firm allocations right, so that the marginal return to investment in firm i's division A …

the presence of fire sales, and how fire sales can reduce productive investment. We conclude by showing how asset fire …

This paper uses a quasi natural experiment to explore how financial education changes savings, investment, and consumer …

neoclassical growth model. Investment rates and total factor productivity start out low and rise over time. These model dynamics … distribution, which support the aggregate and micro-level implications of our theory …

variety of tests for world financial capital market integration ranging from the correlation of saving and investment …

financial intermediaries. We show that when interest rates are high, a decrease in interest rates stimulates investment and …