Investment and financial restraints: theory and evidence

This paper examines investment decisions in an economy with two financial markets: an official market, which is subject to rationing due to an interest rate ceiling, and an unrestricted market, with a higher interest rate. In this context, the long-run equilibrium aggregate capital stock is unambigu...

Full description

Bibliographic Details
Main Authors: Devereux, M, Demetriades, P
Format: Journal article
Published: 2000