Asset fixity and backward-bending investment demand functions
نویسندگان
چکیده
منابع مشابه
Interest Rates, Irreversibility, and Backward-Bending Investment
This paper studies the effect of interest rates on investment in an environment where firms make irreversible investments with uncertain pay-offs. In this setting, changes in the interest rate affect both the cost of capital and the cost of delaying investment to acquire information. These two forces combine to generate an aggregate investment demand curve that is a backward-bending function of...
متن کاملAsset Fixity in U.s. Agriculture: Robustness to Functional Form
The sensitivity of asset fixity conclusions, input adjustment rates, and elasticities to choice of functional form is examined using a dynamic dual model of U.S. agriculture. A very general initial specification allows tests of instantaneous adjustment to be performed for every input. Test results are mixed across functional forms for all inputs except real estate, which is consistently found t...
متن کاملInvestment Shocks and Asset Prices ∗
I explore the implications for asset prices and macroeconomic dynamics of shocks that improve real investment opportunities and thus affect the representative household’s marginal utility. These investment shocks generate differences in risk premia due to their heterogenous impact on firms: they benefit firms producing investment relative to firms producing consumption goods, and increase the v...
متن کاملAsset Prices and Real Investment
This paper analyzes the links between the firms investment technology and financial asset prices within a general equilibrium production economy. The model assumes that real investment is irreversible and subject to convex adjustment costs. It shows how these basic features of real investment naturally generate rich dynamics of stock returns. Firm investment activity and firm characteristics, p...
متن کاملFinancial Constraints, Asset Tangibility, andCorporate Investment*
Pledgeable assets support more borrowing, which allows for further investment in pledgeable assets. We use this credit multiplier to identify the impact of nancing frictions on corporate investment. The multiplier suggests that investmentcash ow sensitivities should be increasing in the tangibility of rmsassets (a proxy for pledgeability), but only if rms are nancially constrained. Our e...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Research in International Business and Finance
سال: 2016
ISSN: 0275-5319
DOI: 10.1016/j.ribaf.2016.03.012