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We find that model estimates of the term structure of ex ante or perceived macro uncertainty are more in line with realized uncertainty than survey respondents perceptions for both in flation and output growth. Survey estimates contain short-term variation in short-horizon uncertainty which is...
Persistent link: https://www.econbiz.de/10010532235
We examine interactions between investment and financing decisions in a dynamic model where the firm can alter the mix of debt and equity financing and exercise a randomly arriving and potentially short lived growth option. The firm will typically finance the exercise of the growth option with...
Persistent link: https://www.econbiz.de/10013008584
This study examines the asymmetry between capital flows and economic growth in 42 countries for the period 1990-2017. It further argues that uncertainty is an important channel through which asymmetry operates. As such, the three measures of uncertainty are macroeconomic, fiscal and...
Persistent link: https://www.econbiz.de/10012864249
This study examines the asymmetry between capital flows and economic growth in 42 countries for the period 1990-2017. It further argues that uncertainty is an important channel through which asymmetry operates. As such, the three measures of uncertainty are macroeconomic, fiscal and...
Persistent link: https://www.econbiz.de/10012058445
We investigate the relationship between bankruptcy risk and expected future sales growth for Norwegian non-listed firms … for the period 1988-2007. We find that firms with high bankruptcy risk also have high expected future growth. Financial … ratios characterizing firms with high bankruptcy risk also characterize firms with high future expected growth. Small firms …
Persistent link: https://www.econbiz.de/10014185729
The link between systemic risk and economic growth is hard to study because the relationship is believed to be … nonlinear and systemic risk is unobservable. The myriad of measures proposed in the literature add model uncertainty as an … additional difficulty. I use a Bayesian quantile regression to study the relevance of 33 systemic risk indicators to explain …
Persistent link: https://www.econbiz.de/10013226354
I develop a framework of the build-up and outbreak of financial crises in an asymmetric information setting. In equilibrium, two distinct economic states arise endogenously: normal times – periods of modest investment, and booms – periods of expansionary investment. Normal times occur when...
Persistent link: https://www.econbiz.de/10012960899