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Book/Printed Material Firm dynamics, investment, and debt portfolio balance sheet effects of the mexican crisis of 1994

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Title

  • Firm dynamics, investment, and debt portfolio balance sheet effects of the mexican crisis of 1994

Summary

  • "We build a partial equilibrium model of firm dynamics under exchange rate uncertainty. Firms face idiosyncratic productivity shocks and observe the current level of the real exchange rate each period. Given their current level of capital stock, firms make their export decisions and choose how much to invest. Investment is financed through one period loans from foreign lenders. The interest rate charged by each lender is set to satisfy an expected zero-profit condition. The model delivers a distribution of firms over productivity, capital stocks and debt portfolios, as well as an exit rule. We calibrate the model using data from a panel of Mexican firms, from 1989 to 2000, and analyze the effect of the 1994 crisis on these variables. As a result of the real exchange rate depreciation, the model predicts: (i) an increase in the debt burden, (ii) an increase in exports, and (iii) a large decline in investment. These real effects are consistent with the evidence for the Mexican crisis"--National Bureau of Economic Research web site.

Names

  • Pratap, Sangeeta
  • Urrutia, Carlos
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2004.

Headings

  • -  Equilibrium (Economics)--Mathematical models
  • -  Financial crises--Mexico--Econometric models
  • -  Foreign exchange rates--Mexico--Econometric models
  • -  Investments, Foreign--Mexico--Econometric models

Notes

  • -  Title from PDF file as viewed on 1/12/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005615150

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Pratap, Sangeeta, Carlos Urrutia, and National Bureau Of Economic Research. Firm Dynamics, Investment, and Debt Portfolio Balance Sheet Effects of the Mexican Crisis of. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. https://www.loc.gov/item/2005615150/.

APA citation style:

Pratap, S., Urrutia, C. & National Bureau Of Economic Research. (2004) Firm Dynamics, Investment, and Debt Portfolio Balance Sheet Effects of the Mexican Crisis of. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://www.loc.gov/item/2005615150/.

MLA citation style:

Pratap, Sangeeta, Carlos Urrutia, and National Bureau Of Economic Research. Firm Dynamics, Investment, and Debt Portfolio Balance Sheet Effects of the Mexican Crisis of. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. Retrieved from the Library of Congress, <www.loc.gov/item/2005615150/>.