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Questions tagged [financial-constraints]

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1 answer
70 views

How should I add my period by period constraint in lagrangian?

This question just suddenly comes to my mind, and I'm not sure what i'm thinking is correct: suppose I want to maximize my cumulative expected utility $E\left[ \sum_{t=0}^{T}\beta^tU(c_t) \right]$ by ...
0 votes
0 answers
13 views

partial equilibrium firm investment model with collateral constraints

I am trying to solve the partial equilibrium firm investment model with collateral constraint. My state variables are firm productivity, capital and debt. While I know how to iterate the value ...
2 votes
0 answers
466 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 ...
3 votes
0 answers
49 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
1 answer
384 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
1 answer
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
1 answer
522 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
1 answer
192 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 ...