Mark-up and Capital Structure of the Firm facing Uncertainty
This note shows that, with pre-set price and capital decisions of firms facing uncertainty and financial market imperfections, price, mark up and the expected degree of capacity utilization (resp. capital) decreases (resp. increases) with the firm internal net worth.
|Date of creation:||2001|
|Publication status:||Published in Economics Letters, Elsevier, 2001, 74, pp.99-105. <10.1016/S0165-1765(01)00525-0>|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00119409|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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- Nobuhiro Kiyotaki & John Moore, 1995.
NBER Working Papers
5083, National Bureau of Economic Research, Inc.
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- Chevalier, Judith A & Scharfstein, David S, 1996.
"Capital-Market Imperfections and Countercyclical Markups: Theory and Evidence,"
American Economic Review,
American Economic Association, vol. 86(4), pages 703-725, September.
- Judith A. Chevalier & David S. Scharfstein, 1994. "Capital Market Imperfections and Countercyclical Markups: Theory and Evidence," NBER Working Papers 4614, National Bureau of Economic Research, Inc.
- James A. Kahn, 1992. "Why is Production More Volatile than Sales? Theory and Evidence on the Stockout-Avoidance Motive for Inventory-Holding," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 481-510.
- Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
- Oliver Hart & John Moore, 1994. "A Theory of Debt Based on the Inalienability of Human Capital," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 841-879.
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