The Experts below are selected from a list of 71748 Experts worldwide ranked by ideXlab platform
Andrea Caggese - One of the best experts on this subject based on the ideXlab platform.
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testing financing constraints on firm investment using Variable Capital
Social Science Research Network, 2006Co-Authors: Andrea CaggeseAbstract:We consider a dynamic multifactor model of investment with financing imperfections, adjustment costs and fixed and Variable Capital. We use the model to derive a test of financing constraints based on a reduced form Variable Capital equation. Simulation results show that this test correctly identifies financially constrained firms even when the estimation of firms' investment opportunities is very noisy. In addition, the test is well specified in the presence of both concave and convex adjustment costs of fixed Capital. We confirm empirically the validity of this test on a sample of small Italian manufacturing companies.
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testing financing constraints on firm investment using Variable Capital
Research Papers in Economics, 2003Co-Authors: Andrea CaggeseAbstract:A recent literature has criticised the sensitivity of a firm's investment to its own cash flow as an adequate measure of financing constraints. In this paper we develop a new method to detect the presence of financing constraints at firm level. We consider a structural dynamic model of investment with financing imperfections and with both fixed and Variable Capital. We solve the model and simulate an industry with many firms. We show that the irreversibility of fixed Capital is the main reason why the sensitivity of fixed investment to cash flow is not a good measure of financing constraints. Using the fact that Variable Capital is reversible, we develop a new test of financing constraints based on a reduced form Variable Capital investment equation. Simulation results show that our test correctly identifies financially constrained firms also when the estimation of firms' investment opportunities is very noisy. Moreover our test is valid regardless of the type of adjustment costs of fixed Capital. We confirm empirically the validity of this method on a sample of US companies.
Martin Eichenbaum - One of the best experts on this subject based on the ideXlab platform.
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nominal rigidities and the dynamic effects of a shock to monetary policy
Journal of Political Economy, 2005Co-Authors: Lawrence J Christiano, Martin Eichenbaum, Charles L EvansAbstract:We present a model embodying moderate amounts of nominal rigidities that accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts that have an average duration of three quarters and Variable Capital utilization.
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nominal rigidities and the dynamic effects of a shock to monetary policy
National Bureau of Economic Research, 2001Co-Authors: Lawrence J Christiano, Martin Eichenbaum, Charles L EvansAbstract:We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average duration three quarters, and Variable Capital utilization.
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factor hoarding and the propagation of business cycles shocks
The American Economic Review, 1994Co-Authors: Craig Burnside, Martin EichenbaumAbstract:This paper analyzes the role of Variable Capital utilization rates in propagating shocks over the business cycle. To this end we formulate and estimate an equilibrium business cycle model in which cyclical Capital utilization rates are viewed as a form of factor hoarding. We find that Variable Capital utilization rates substantially magnify and propagate the impact of shocks to agents' environments. The strength of these propagation effects is evident in the dynamic response functions of various economy wide aggregates to shocks in agents' environments, in the statistics that we construct to summarize the strength of the propagation mechanisms in the model and in the volatility of exogenous technology shocks needed to explain the observed variability in aggregate U.S. output. Other authors have argued that standard Real Business Cycle (RBC) models fail to account for certain features of the data because they do not embody quantitatively important propagation mechanisms. These features include the observed positive serial correlation in the growth rate of output, the shape of the spectrum of the growth rate of real output and the correlation between the forecastable component of real output and various other economic aggregates. Allowing for Variable Capital utilization rates substantially improves the ability of the model to account for these features of the data.
Charles L Evans - One of the best experts on this subject based on the ideXlab platform.
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nominal rigidities and the dynamic effects of a shock to monetary policy
Journal of Political Economy, 2005Co-Authors: Lawrence J Christiano, Martin Eichenbaum, Charles L EvansAbstract:We present a model embodying moderate amounts of nominal rigidities that accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts that have an average duration of three quarters and Variable Capital utilization.
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nominal rigidities and the dynamic effects of a shock to monetary policy
National Bureau of Economic Research, 2001Co-Authors: Lawrence J Christiano, Martin Eichenbaum, Charles L EvansAbstract:We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average duration three quarters, and Variable Capital utilization.
Violeta Ruiz Almendral - One of the best experts on this subject based on the ideXlab platform.
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los problemas tributarios de las sociedades de inversion en Capital Variable sicav tax issues with Variable Capital investment companies
Social Science Research Network, 2006Co-Authors: David Ramos Munoz, Violeta Ruiz AlmendralAbstract:Spanish Abstract: las Sociedades de Inversion en Capital Variable (SICAV) son una constante en el panorama inversor espanol, y han dado lugar a numerosos problemas, derivados de su uso para la gestion de patrimonios personales y familiares, pese a que la ley los clasifica dentro de la inversion 'colectiva'. El articulo analiza las implicaciones mercantiles y tributarias de este fenomeno. English Abstract: The Investment Companies in Variable Capital (SICAV) are a constant in the Spanish investment landscape, and have given rise to numerous problems, as a result of their use for purposes of managing personal and family asset pools, despite the law classifies them within 'collective' investment. The article analyzes the implications of this phenomenon under Commercial and Tax Law.
Lawrence J Christiano - One of the best experts on this subject based on the ideXlab platform.
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nominal rigidities and the dynamic effects of a shock to monetary policy
Journal of Political Economy, 2005Co-Authors: Lawrence J Christiano, Martin Eichenbaum, Charles L EvansAbstract:We present a model embodying moderate amounts of nominal rigidities that accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts that have an average duration of three quarters and Variable Capital utilization.
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nominal rigidities and the dynamic effects of a shock to monetary policy
National Bureau of Economic Research, 2001Co-Authors: Lawrence J Christiano, Martin Eichenbaum, Charles L EvansAbstract:We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average duration three quarters, and Variable Capital utilization.
