scholarly journals International factor mobility, informal interest rate and capital market imperfection: A general equilibrium analysis

2014 ◽  
Vol 37 ◽  
pp. 184-192 ◽  
Author(s):  
Sarbajit Chaudhuri ◽  
Manash Ranjan Gupta
Keyword(s):  
Interest Rate ◽  
General Equilibrium ◽  
Capital Market ◽  
Equilibrium Analysis ◽  
Factor Mobility ◽  
Market Imperfection ◽  
General Equilibrium Analysis ◽  
International Factor Mobility ◽  
Capital Market Imperfection

scholarly journals Corporate Leverage and Growth: A General Equilibrium Analysis

2003 ◽  
Author(s):  
Dilip K. Ghosh
Keyword(s):  
Resource Allocation ◽  
General Equilibrium ◽  
Capital Structure ◽  
Analytical Model ◽  
Capital Market ◽  
Capital Accumulation ◽  
Equity Capital ◽  
Equilibrium Analysis ◽  
Efficient Utilization ◽  
General Equilibrium Analysis

Within the framework of general equilibrium in which there are two corporations generating net earnings by efficient utilization of debt and equity capital it is demonstrated that optimum capital structure indeed exists for each firm and for the economy in competitive capital market. Since the result is strikingly different from the celebrated proposition on capital structure, an attempt is made to compare this analytical model with the classic paradigm of Modigliani and Miller. The effects of resource allocation are also examined and the existing thoughts on leverage are brought out in this work that subsumes growth and capital accumulation.  

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