TY  - BOOK
AU  - Razin,Assaf
AU  - Sadka,Efraim
AU  - Yuen,Chi-Wa
TI  - Capital Flows with Debt- and Equity-Financed Investment-Equilibrium Structure and Efficiency Implications
T2  - IMF Working Papers; Working Paper
SN  - 1451857640 :
SN  - 1018-5941
PY  - 1998///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Asymmetric Information
KW  - imf
KW  - Capital Flows
KW  - Capital Market
KW  - Corrective Policy
KW  - Debt and Equity
KW  - Efficient Capital Flows
KW  - Argentina
KW  - Hong Kong Special Administrative Region of China
KW  - Israel
N2  - This paper distinguishes between debt and equity flows in the presence of information asymmetry between the firm's "insiders" and "outsiders" in a small open economy. It shows the inadequacy of capital investment because its scope is too narrow and the investment each firm makes is too little. An unconventional policy tool is proposed to correct the market failure: lump-sum subsidies to firms that choose to equity-finance their investments
UR  - http://elibrary.imf.org/view/IMF001/01086-9781451857641/01086-9781451857641/01086-9781451857641.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451857641
ER  -