Investment and financial restraints: Theory and evidence
UNSPECIFIED (2000) Investment and financial restraints: Theory and evidence. In: European Meeting of the Econometric-Society, SEP, 1993, UPPSALA, SWEDEN.Full text not available from this repository.
This paper examines investment decisions in an economy with two financial markets: an official market, which is subject to rationing due to an interest rate ceiling, and an unrestricted market, with a higher interest rate. in this context, the long-run equilibrium aggregate capital stock is unambiguously higher than in the absence of the interest rate ceiling, even though its relationship with the ceiling is non-monotonic. Empirical results using aggregate panel data from 52 developing countries for the period 1974-1988 provide support for the model, particularly in economies that have some access to international capital markets. Copyright (C) 2000 John Wiley & Sons, Ltd.
|Item Type:||Conference Item (UNSPECIFIED)|
|Subjects:||H Social Sciences > HG Finance|
|Journal or Publication Title:||INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS|
|Publisher:||JOHN WILEY & SONS LTD|
|Number of Pages:||12|
|Page Range:||pp. 285-296|
|Title of Event:||European Meeting of the Econometric-Society|
|Location of Event:||UPPSALA, SWEDEN|
|Date(s) of Event:||SEP, 1993|
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