Search Results
Journal Article
Financing business investment
Working Paper
Fiscal multipliers under an interest rate peg of deterministic vs. stochastic duration
This paper revisits the size of the fiscal multiplier. The experiment is a fiscal expansion under the assumption of a pegged nominal rate of interest. We demonstrate that a quantitatively important issue is the articulation of the exit from the policy experiment. If the monetary-fiscal expansion is stochastic with a mean duration of T periods, the fiscal multiplier can be unboundedly large. However, if the monetary-fiscal expansion is for a fixed T periods, the multiplier is much smaller. Our explanation rests on a Jensen?s inequality type argument: the deterministic multiplier is convex in ...
Journal Article
Law firms go global: taking Texas talent to a worldwide market
Working Paper
A conversation with 590 nascent entrepreneurs
This paper summarizes interviews from 1998 with 590 individuals trying to create a business centered around five questions: ?Who are you??, ?What are you trying to accomplish??, ?What have you and others put into the business??, ?What have you accomplished??, ?What remains to be done?? There is a great deal of heterogeneity across these Nascent entrepreneurs, but they tend to have more education than the general population. Growing up in a family in which one or both parents had a business does not seem to be an important determinant of entry into entrepreneurship for males, while it seems to ...
Working Paper
Fiscal multipliers under an interest rate peg of deterministic vs. stochastic duration
This paper revisits the size of the fiscal multiplier. The experiment is a fiscal expansion under the assumption of a pegged nominal rate of interest. We demonstrate that a quantitatively important issue is the articulation of the exit from the policy experiment. If the monetary-fiscal expansion is stochastic with a mean duration of T periods, the fiscal multiplier can be unboundedly large. However, if the monetary-fiscal expansion is for a fixed T periods, the multiplier is much smaller.
Journal Article
Recent developments in business financing
Journal Article
Business financing in the defense period
Journal Article
Financing of business expansion
Newsletter
Has Business Fixed Investment Really Been Unusually Low?
Business fixed investment represents the spending by businesses to increase production capacity. It is traditionally decomposed into equipment (such as computers and machines), structures (such as plants, shopping malls, or warehouses), and intellectual property (such as software and R&D). After declining sharply during the Great Recession, business fixed investment (BFI) recovered in 2010, but investment was again quite low in 2015 and 2016. This slowdown was driven in part by the decline of oil prices that led to a significant contraction in the oil drilling industry. Since then, growth has ...
Discussion Paper
April Update: The Coronavirus and Firms in the Fifth Dis
Over the past several weeks, social distancing and shutdowns have impacted our economy. Fifth District firms continued to tell us how COVID-19 has affected their business operations in recent surveys.