Optimality of Investment under Imperfectly Enforceable Financial Contracts.

We investigate the optimality of aggregate investment and its policy implications under an environment in which financial contracts are imperfectly enforceable. We show that too much investment occurs when the ratio of own capital to debt is smaller than the ratio of project returns in terms of futu...

Descripción completa

Detalles Bibliográficos
Publicado en:Economic Inquiry Vol. 41; no. 2; pp. 318 - 325
Autores principales: Chu, Hsiao-Lei, Chen, Nan-Kuang
Formato: Artículo
Publicado: Wiley-Blackwell April 2003
Materias:
Acceso en línea:Ver este registro en EBSCOhost