Explicit Lagrange Multiplier for Firms Facing a Debt Ceiling Constraint
This 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.
|Date of creation:||2000|
|Publication status:||Published in Economics Letters, Elsevier, 2000, 67 (2), pp.153-158. <10.1016/S0165-1765(99)00270-0>|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00119408|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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