Misallocation of capital in a model of endogenous financial intermediation and insurance

In this paper we analyze productivity and welfare losses from capital misallocation in a general equilibrium model of occupational choice and endogenous financial intermediation. We study the effects of borrowing and lending, insurance, and risk sharing on the optimal allocation of resources. We find that financial markets together with general equilibrium effects have large impact on entrepreneurs' entry and firm-size decisions. Efficiency gains are increasing in the quality of financial markets, particularly in their ability to alleviate a financing constraint by providing insurance against idiosyncratic risk.

Financial constraints and the failure of innovation projects

Theoretical and empirical approaches have stressed the existence of financial constraints in innovative activities of firms. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. In the empirical analysis carried out for a panel data of potential innovative Spanish firms for the period 2004-2010, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage and that low-technological manufacturing and non-KIS service sectors are more sensitive to financial constraints.

Fremont County, Independent Auditor's Reports, Basic Financial Statements and Supplementary Information, Schedule of Findings, June 30, 2005

County Audit Report

City of Center Point, Independent Auditor's Reports, Basic Financial Statements and Supplementary Information, Schedule of Findings, June 30, 2004

City Audit Report

Iowa Federal Family Education Loan Program Division, Iowa College Student Aid Commission - Independent Auditor's Reports Basic Financial Statements and Supplementary Information, June 30, 2003

State Agency Audit Report

Iowa Centennial Memorial Foundation, Independent Auditor's Reports Financial Statements and Supplementary Information, May 31, 2004

State Agency Audit Report

Iowa Petroleum Underground Storage Tank Board State of Iowa, Independent Auditor's Reports Financial Statements and Supplementary Information, June 30, 2003

State Agency Audit Report

Iowa Water Pollution Control Works and Drinking Water Facilities Financing Programs (Joint Programs of the Iowa Finance Authority and the Iowa Department of Natural Resources), Independent Auditor's Reports Financial Statements and Supplemental Information Schedule of Findings, June 30, 2003

State Agency Audit Report

City of Bernard Sewer Funds Independent Auditor's Reports Financial Statements and Supplemental Information Schedule of Findings and Questioned Costs, June 30, 2002

Other Audit Reports

Villisca Municipal Power Plant, Independent Auditor's Reports Financial Statements and Supplemental Information Schedule of Findings, December 31, 2003

Other Audit Report - Utilities

Clarke Community School District Independent Auditor's Reports Basic Financial Statements and Supplementary Information Schedule of Findings and Questioned Costs, June 30, 2004

Clarke Community School District Independent Auditor's Reports Basic Financial Statements and Supplementary Information Schedule of Findings and Questioned Costs, June 30, 2004

Office of Treasurer of State Iowa Educational Savings Plan Trust, Independent Auditor's Reports Financial Statements and Supplementary Information, June 30, 2004

State Agency Audit Report