Article ID Journal Published Year Pages File Type
7349465 Economics Letters 2018 13 Pages PDF
Abstract
We develop a continuous-time model of optimal lending contracts under limited enforcement and provide closed-form solutions. We characterize the dynamics of firms' growth rate, Tobin's Q, and capital structure over their life cycles.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
A tractable model of limited enforcement and the life-cycle dynamics of firms
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