TY - JOUR
T1 - Demand for investment in productive and financial capital
AU - Hochman, Eitan
AU - Hochman, Oded
AU - Razin, Assaf
PY - 1973/4
Y1 - 1973/4
N2 - The paper deals with an entrepreneur who operates in imperfect capital markets, making rational decisions about productive and financial investment. Using the economic rule that the allocation of assets between productive and financial purposes is carried out according to the equality of the marginal productivity and the marginal factor costs of debt, the paper analyses the factors which determine the size of the firm, the size of debt, and the optimal dynamic path.
AB - The paper deals with an entrepreneur who operates in imperfect capital markets, making rational decisions about productive and financial investment. Using the economic rule that the allocation of assets between productive and financial purposes is carried out according to the equality of the marginal productivity and the marginal factor costs of debt, the paper analyses the factors which determine the size of the firm, the size of debt, and the optimal dynamic path.
UR - http://www.scopus.com/inward/record.url?scp=0010966979&partnerID=8YFLogxK
U2 - 10.1016/0014-2921(73)90031-7
DO - 10.1016/0014-2921(73)90031-7
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AN - SCOPUS:0010966979
SN - 0014-2921
VL - 4
SP - 67
EP - 83
JO - European Economic Review
JF - European Economic Review
IS - 1
ER -
