Financing constraints and inventory investment: a comparative study with high-frequency panel data
Article Abstract:
The role of financing constraints in changes in inventory investment was investigated. The empirical performance of cash stocks, cash flow and coverage ratio was analyzed using a common econometric model to test for the existence of financing constraints. Results showed that cash flow exerts the greatest influence on inventory investment across different time periods, firm size and cyclical volatility of inventory investment in the durables sector. Thus, changes in cash flow help explain the role of financing constraints in inventory investment.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1998
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Consumption and credit: a model of time-varying liquidity constraints
Article Abstract:
A study of the optimal consumption behavior of persons facing stochastically varying borrowing limitations based on income has been conducted. The analysis used empirical evidence derived from US aggregate data. The time-varying liquidity constraint model was able to accurately predict two key characteristics from the data. These were the correlation between consumption growth and predictable credit growth and consumption growth and predictable income growth.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1999
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Capacity utilization under regulatory constraints
Article Abstract:
A methodology for forecasting the impact of regulations involving capacity utilization for a multiproduct profit-maximizing firm is analyzed. The method allows for the application of rationing effects and analysis of prior evaluation of rationing effects. Output quotas in the open-access marine fishing industry is examined. It is shown that output quotas can generate much disinvestment incentives.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1993
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