Capital Structure and Investment Dynamics with Fire Sales

Douglas Gale () and Piero Gottardi

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: The financial crisis of 2007-2008 and the current sovereign debt crisis in Europe have focused attention on the macroeconomic consequences of debt financing. In this paper, we turn our attention to the use of debt finance in the corporate sector and study the general equilibrium effects of debt finance on investment and growth. More precisely, we analyze underinvestment in equilibrium when markets are incomplete and firms use debt and equity to finance investment.

Date: 2013-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/13/13-21.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/13/13-21.pdf [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/13/13-21.pdf)

Related works:
Working Paper: Capital structure and investment dynamics with fire sales (2013)
Working Paper: Capital Structure and Investment Dynamics with Fire Sales (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:upafin:13-21

Access Statistics for this paper

More papers in Working Papers from University of Pennsylvania, Wharton School, Weiss Center Contact information at EDIRC.
Bibliographic data for series maintained by ().