Dynamic computable general equilibrium (CGE) models, such as the MONASH model developed at the Centre of Policy Studies, typically use complex dynamic investment mechanisms to generate dynamic growth paths. Even so, these models don’t account for corporate finance and corporate taxation in determining investment outcomes. This paper provides final results from a work program aimed at imposing c...

Nowadays, banks are considered as one of the major components of the financial system of a country and any deficits and malfunction in the banking system will negatively affect the performance of the real sector. Therefore, there is a need for more investigation on the behavior of banks and factors affecting those behaviors in a country. One of the issues that affect the behavior of banks is sy...

We present a dynamic model of the hospital industry in which nonprofit and for-profit hospitals coexist and compete and are differentiated by their objective functions, investment technologies, and taxation rates. In our model, patients differ by income and type of insurance coverage, and choose admission to their preferred hospital, while hospitals choose investment, entry, exit, and pricing s...

I present a tractable dynamic model of political economy where disagreements about the composition of public spending result in implementation of short-sighted policies. The relative price of investment to consumption is excessively large in equilibrium due to over-taxation. Investment rates are too low which slows down growth along the transition. In the long run, this results in output, consu...

the purpose of this paper is a study on the effect of cash flows on the gap between actual and optimal financial leverage ratio companies listed in tehran stock exchange. in this regard, we try to help with advanced econometric techniques such as partial adjustment model on panel data and generalized method of moments to achieve a reasonable estimate of the impacts.in this paper, were analyzed ...

In this paper, we consider an investment and consumption problem with stochastic interest rate, in which risk-free interest rate dynamics is driven by the Ho-Lee model,while risky asset price is supposed to follow a geometric Brownian motion and be correlated with interest rate dynamics. Our goal is to seek an optimal investment and consumption strategy to maximize the expected discounted utili...

Duration of an event tends to be underestimated as it becomes temporally distant (Spetch & Wilkie, 1983). The current study investigated this so-called choose-short effect in time and length in order to reevaluate the claim that the choose-short effect is special to temporal memory (Wearden, Parry, & Stamp, 2002). Participants made discrimination judgments in time or length on a pair of line st...

Models of capital investment in industrial organization typically treat bankruptcy as an involuntary and final outcome, yet firms that file under Chapter 11 of the U.S. Bankruptcy Code typically do so voluntarily and with the expectation that they will eventually emerge. Moreover, Chapter 11 permits cancellation or renegotiation of longterm contracts for labor and capital, effectively providing...

A: This paper discusses and analyzes some portfolio allocation problems with autoregressive processes. Firstly, we examine the distributional behavior of some international indexes. Then, we propose an AR(1)-GARCH(1,1) model to describe the evolution of the portfolio returns over time. In particular, we assume that investors wish to maximize some expected utility functionals of =nal wealth and ...