We solve an agent's optimization problem of meeting demands for cash over time with cash deposited in bank or invested in stock. The stock pays dividends and uncertain capital gains, and a commission is incurred in buying and selling of stock. We use a stochastic maximum principle to obtain...

The aim of this paper is to investigate the issue of R&D investment and the market value of the firm. This idea dating back from Arrow paper, later developed by Paul Romer but in the area of economic growth. Zvi Griliches (1979), first introduced the production function, which later would be...

The study examines the long run effect of investment (proxied by gross fixed capital formation) on electricity consumption for Ghana, for the period 1971-2011, by employing annual time series secondary data from World Bank database (World development indicator). The Augmented Dickey Fuller (ADF)...

Firm’s strategic orientation involves synchronizing environmental dynamics, corporate strategy and capital structure in order to achieve firm performance targets. The co-alignment model used successfully in the hospitality industry might be used in a wider context as a framework in explaining...

Abstract The paper determines whether minimum wage stimulates economic growth in Ghana, for the period 1984-2013, using autoregressive distributed lag (ARDL) bounds testing approach to cointegration, within an error correction framework. A preliminary test provides evidence of correlation...

We consider a variety of vintage capital models of a firm?s choice of technology under uncertaintyin the presence of adjustment costs and technology-specific learning. Similar models have beenstudied in a deterministic setting. Part of our objective is to examine the robustness of...

Following Chamley, Lucas, Laitner, and Aiyagari, this dissertation continues toexplore the answer for the question of zero capital taxation by discussing how taxeson capital income, labor income, and property affect the economy in the contextof a vintage capital model where the embodied...

This note develops an overlapping generations model with credit rationing on research and development, in which both are determined simultaneously and endogenously. The model provides a useful tool to examine different policies that may help alleviate the negative effect of �financial...

The literature analyzing games where some players have private information about their "types" is usually based on the duality of "good" and "bad" types (GB approach), where "good" type denotes the type with better quality. In contrast, this paper analyzes a signalling game without types...

This paper analyzes debt-equity choice for financing a two-stage investment when a firm’s insiders have private information about the firm’s expected earnings. When private information is one-dimensional (for example when short-term earnings are common knowledge while long-term earnings are...