The Economics of Imperfect Markets: The Effects of Market Imperfections on Economic Decision-Making

Description

The real world is characterized by the presence of imperfections in goods, financial and labour markets. These imperfections have the potential to create links among those markets that differ in a relevant way from those outlined in the standard model. In financial markets, imperfections can alter the efficiency of the economy and thus cause unintended effects on goods and labour markets. Moreover, in the presence of market distortions, the interaction between policies and institutions becomes a critical aspect. This book, which brings together essays from distinguished scholars on this subject, provides new insights on how these imperfections affect the outcomes of real-world markets. Front Matter....Pages i-x Front Matter....Pages 16-16 What Can Cash Shortfalls and Windfalls Tell Us About Finance Constraints?....Pages 17-32 Non-Tobin’s q in Tests for Financial Constraints to Investment....Pages 33-49 Cash Holdings, Firm Value and the Role of Market Imperfections. A Cross Country Analysis....Pages 51-71 Multiple Bank Relationships and the Main Bank System: Evidence from a Matched Sample of Japanese Small Firms and Main Banks....Pages 73-90 The Role of Fixed Assets in Reducing Asymmetric Information....Pages 91-102 Financial Development and Long-Run Growth: Cross-Sectional Evidence Revised....Pages 103-110 Front Matter....Pages 112-112 Investment, Productivity and Employment in the Italian Economy....Pages 113-136 The Macroeconomics of Imperfect Capital Markets: Whither Saving-Investment Imbalances?....Pages 137-166 The Effects of Uncertainty and Sunk Costs on Firms’ Decision-Making: Evidence from Net Entry, Industry Structure and Investment Dynamics....Pages 167-182 Investment and Trade Patterns in a Sticky-Price, Open-Economy Model....Pages 183-212 The Anticompetitive Effects of the Antitrust Policy....Pages 213-232