Saltari, Enrico and Giuseppe, Travaglini (2011): Optimal capital stock and financing constraints.
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In this paper we show that financing constraints affect the optimal level of capital stock even when the financing constraint is ineffective. This happens when the firm rationally anticipates that access to external financing resources may be rationed in the future. We will show that with these expectations, the optimal investment policy is to invest less in any given period, thereby lowering the desired optimal capital stock in the long run.
|Item Type:||MPRA Paper|
|Original Title:||Optimal capital stock and financing constraints|
|Keywords:||Investment; capital stock; constraints; uncertainty|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply; Credit; Money Multipliers
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E22 - Capital; Investment; Capacity
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
|Depositing User:||Giuseppe Travaglini|
|Date Deposited:||29. Nov 2011 17:18|
|Last Modified:||16. Feb 2013 07:07|
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