Liquidity, innovation, and endogenous growth

Arbeitspapier

We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that financing constraints lead firms to decrease production but may spur investment in innovation (R&D). We characterize which firms should substitute production for innovation in the face of constraints and thus display a "gambling" type of behavior. We embed our firm dynamics into a model of endogenous growth and show that financing frictions have offsetting effects on economic growth.

Angaben zum Objekt

• ISBN: 978-92-899-2167-1
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 1919

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Theory ; Capital Budgeting; Fixed Investment and Inventory Studies; Capacity ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Payout Policy ; Production, Pricing, and Market Structure; Size Distribution of Firms
• Thema: cash management ; endogenous growth ; financial constraints ; innovation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Malamud, Semyon ; Zucchi, Francesca
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2016

Weitere Informationen

• DOI: doi:10.2866/496267
• Handle: http://hdl.handle.net/10419/154352
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ