Explicit Lagrange Multiplier for Firms Facing a Debt Ceiling Constraint
AbstractThis paper provides the explicit expression of investment facing a binding debt ceiling and the explicit expression of the Lagrange multipliers related to the binding debt ceiling constraint. This result allows to check for misspecification of the parameterizations of these Lagrange multipliers used in Euler investment equations tests during the 1990's.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00119408.
Date of creation: 2000
Date of revision:
Publication status: Published, Economics Letters, 2000, 67, 2, 153-158
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Investment; Credit Rationing;
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