The paper develops a model of firm's investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm's investment. Firm's investment is an increasing function of the firm's marginal q …, however the investment function is characterized by an upper bound that depends on the firm's borrowing capabilities. The firm …

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 …

If financial markets are perfect, the choice of the sources of finance does not influence investment decisions. However … determining real investment decisions. Despite the theoretical plausibility of a relationship between capital markets … is needed to identify method which will not be subject to critiques related to the use of cash-flow in the investment …

believe that sectors without well-developed financial markets will benefit from sector-specific regulation of investment …

believe that sectors without well-developed financial markets will benefit from sector-specific regulation of investment …

We demonstrate that firms' investment and job creation are influenced by shareholder taxes on capital gains and … dividend. More importantly, the relation between shareholder taxes and firms' investment and job creation varies with financial … constraint that firms face. Less financially constrained firms show larger increases in capital investment than more financially …