Questions tagged [financial-constraints]

Filter by
Sorted by
Tagged with
1
vote
1answer
53 views

How do you formulate a distance constraint and a budget constraint?

Everybody knows about budget constraints and how they are represented: but what if I want to represent a distance constrain from the shop you buy the goods? How can I build that?
1
vote
0answers
81 views

Arellano and Bond (1991) or Blundell and Bond (1998) in R estimation

I have the following problem with the Arellano and Bond (1991) or Blundell and Bond (1998) estimators in R using the plm package. I receive the following problem when trying to run the needed ...
0
votes
2answers
46 views

How do I confirm that the constraint set wL + rK < Q is convex

Suppose a firm produces Q units using labour (L) for which the wage, w>0 and the price of capital (K) is r>0. It cannot employ negative amounts of its factors: L $\geq 0$, K $\geq 0$. The firm's ...
3
votes
0answers
44 views

advice on econometric or methodological approach of my master thesis

For my master thesis, I am studying the effect of input trade liberalizaion on Research and development decision depending on firms' financial constraints in India. I have a firm level database from ...
2
votes
1answer
265 views

OLG - Government Budget Constraint

Consider a two period OLG model where each young agent recieves an endowment of $w$ units of the single commodity good in the 1st period of his/her life, and nothing in the second period. Each ...
0
votes
1answer
3k views

Lifetime Budget Constraint [closed]

An agent lives for 2 periods, consumes $c$ and saves $s$ at interest rate $r$ in the first period of life from income $y$. In the second period the agent consumes for any savings. We introduce a ...
2
votes
0answers
64 views

Does this conditional increase in income affect a budget line in the same way as an unconditional increase in income would?

It's been awhile since I've taken introductory microeconomics. I remember increases in income move budget line outward. What if the increases have some condition? The problem: Jill has $I$ to ...
0
votes
1answer
340 views

Can budget lines be discontinuous?

It's been awhile since I've taken introductory microeconomics. I read budget lines can be discontinuous awhile ago but am suspicious as to such a concept being discussed in intro micro classes ...
2
votes
1answer
505 views

The Cash Flow Sensitivity of Cash

I am struggling with calculating the Cash Flow Sensitivity of Cash from the Almeida et al. (2004) working paper. (http://u.osu.edu/weisbach.2/files/2015/01/ACWJFinance-ui65te.pdf) I am trying to ...
2
votes
1answer
178 views

Impact of working capital constraints onto output

I'm looking for empirical evidence (optimally from natural experiments, as described below) of the impact of working capital constraints onto firm output, and the differentials of firm size. I ...