R. Glenn Hubbard's Asymmetric Information, Corporate Finance, and Investment PDF

By R. Glenn Hubbard

ISBN-10: 0226355853

ISBN-13: 9780226355856

Ebook by means of

Show description

Read Online or Download Asymmetric Information, Corporate Finance, and Investment (National Bureau of Economic Research Project Report) PDF

Similar money & monetary policy books

Get The Value of a Dollar: Colonial Era to the Civil War: PDF

Following the structure of the generally acclaimed, the worth of a greenback, 1860-2004, the worth of a greenback 1600-1859, The Colonial period to The Civil struggle documents the particular costs of hundreds of thousands of things that buyers bought from the Colonial period to the Civil struggle. Our editorial division were flooded with requests from clients of our worth of a greenback for a similar form of info, simply from an previous period of time.

Download e-book for iPad: The golden age of the quantity theory by David E.W. Laidler

Files the elaboration of the amount thought of cash right into a common selection theoretic clarification of rate point behaviour. the writer argues that the valuable architects of the volume conception - Marshall, Fisher and Wicksell - contributed in some way to the cave in of the top-rated.

Poland and the Eurozone - download pdf or read online

Poland is certainly one of Europe's monetary out-performers. The country's heritage and geography motivate it to be in favour of deeper ecu integration. This publication goals to give a contribution to discussions at the destiny form of EMU and the subsequent steps forward.

Extra info for Asymmetric Information, Corporate Finance, and Investment (National Bureau of Economic Research Project Report)

Sample text

The investment function of equation (3) can thus be rewritten as (5) where bt represents the level of rationed credit and hb > O. Extending the circulating capital model to incorporate investment in longlived physical capital is principally a matter of redefining the production period. Consider a firm whose sole investment project consists of a plant with a fixed life of T periods. Assume for simplicity that funds borrowed to support the plant are due to be repaid (including accrued interest) at the end of period T, that input costs and output revenues are contemporaneous in each subperiod t = 1, .

36. This consumption function, which is common to traditional macroeconomic models, is used for the sake of simplicity. A full general equilibrium model with intertemporal consumer utility maximization is developed in Greenwald and Stiglitz (1986). A model with a consumption function modified to take account of permanent income in a rational expectations context is developed in Greenwald and Stiglitz (1988). Another general equilibrium alternative is developed by Woodford (1986), who incorporates endogenous borrowing constraints.

One important qualification must, however, be made to this simple description. When the consequences of actions are particularly uncertain, and firms are particularly risk averse, it is sometimes suggested that firms will simply maintain the status quo. But what does it mean to continue doing what you were doing before? Does it mean keeping absolute prices fixed, or relative prices? Absolute wages, or relative wages? We provide here an answer: very risk-averse firms will take those actions that minimize the variability of their profits.

Download PDF sample

Asymmetric Information, Corporate Finance, and Investment (National Bureau of Economic Research Project Report) by R. Glenn Hubbard


by Michael
4.5

Rated 4.05 of 5 – based on 7 votes