MENU

You are here

Dissertations

Essays on financial structure and economic activity under asymmetric information

Leonarda Zicchino, 2002
Faculty Advisor: Paolo Siconolfi

Abstract

This dissertation provides an analysis of the relationship between the financial and the real sector of an economy with asymmetric information. The first chapter addresses the effect of adverse selection on the growth process. It shows that an economy may have two possible competitive equilibria with distinct bank contracts, interest rates on deposits and individuals' investment portfolios. The equilibrium outcome depends on the level of aggregate wealth and on the parameter values describing the firms' heterogeneous marginal productivity of capital. Thus, as the economy grows, the financial structure may evolve. Finally, the dynamics of the economy can be described by either (a) a monotonically increasing law of motion of wealth with a unique steady state characterized by the coexistence of banks and a stock market; or (b) a monotonically increasing law of motion with a kink and either one or three steady states.

The second chapter analyzes the relationship between financial markets and capital formation in the presence of moral hazard. The economy may have two possible competitive equilibria. In one case firms adopt a safe investment technology and individuals allocate their savings both in bank deposits and firms' shares. The other possible equilibrium entails the disappearance of the stock market. Moreover, economies with different initial levels of wealth may converge to steady states characterized by either a low or a high level of capital accumulation.

Finally, the economy may experience output fluctuations with contractions involving an increase in credit rationing.

The third chapter provides an analysis of the dynamic relationship between firms' financial conditions and the investment level by using firm-level panel data from 36 countries. The coefficient estimates resulting from the Vector Autoregression and the impulse-response functions support our claim that in the presence of financing constraints, which are more stringent in countries with an undeveloped financial system, the availability of liquid assets affects firms' investment decisions.

Application Deadlines

Master of Science in Marketing >

For Fall 2016 Entry:

Available: August 1st, 2015
Deadline: January 4th, 2016

 

Master of Science in Financial Economics >

For Fall 2016 Entry:

Available: August 1st, 2015
Deadline: January 4th, 2016

 

Master of Science in Management Science and Engineering >

For Fall 2016 Entry:
To be determined

 

Available 8/1/15
Sept 2016

Doctoral
Deadline: 01/05/16

MS Marketing
Deadline: 01/04/16

MS Financial Economics
Deadline: 01/04/16

 

Doctoral Program News

Young Alumni Balseiro wins George B. Dantzig Dissertation Award

At the 2014 Informs national meeting, Santiago Balseiro was honored for his work in "Competition and Yield Optimization in Ad Exchanges". We congratulate Santiago on his accomplishment.

Read More Here

Ethan Rouen wins Deloitte Doctoral Fellowship in Accounting

The Deloitte Foundation has awarded $25,000 grants to 10 top accounting Ph.D. candidates through the Deloitte Foundation’s annual Doctoral Fellowship program. Given to students who plan to pursue academic careers upon graduation, the award will support the 2015 recipients’ final year of coursework and the subsequent year to complete their doctoral dissertation.

Read More Here

Honigsberg featured in Ideas at Work

The August issue of Ideas at Work features research that doctoral candidate Colleen Honigsberg led in conjunction with Sharon Katz.

Read More about Colleen

Wazlawek featured in Ideas at Work

Abbie Wazlawek's joint research with Professor Daniel Ames is featured in the June 24th, 2014 edition of Ideas at Work

Read More about Abbie

Ethan Rouen featured in Ideas at Work

Ethan Rouen's joint research with Professor Dan Amiram is featured in the May 15th, 2014 edition of Ideas at Work

Read More about Abbie

Rivas Wins Fellowship

The PhD program is proud to congratulate Miguel Duro Rivas, who was awarded the Nasdaq Educational Foundation Doctoral Dissertation Fellowship.

Read More about Miguel

Wong wins Deloitte Fellowship

We are proud to announce that Yu Ting (Forester) Wong is one of the recipients of the 2014 Deloitte Foundation Doctoral Fellowship in Accounting.

Read More About Yu Ting >

The PhD Program Congratulates John Yao

PhD student John Yao was a finalist in the 2013 M&SOM (Manufacturing & Service Operations Management) student paper competition.

Read More About John >

Honigsberg Named Postdoctoral Fellow

The PhD program is proud to congratulate Colleen Honigsberg, who was named the Postdoctoral Fellow in Corporate Governance at the Millstein Center at Columbia Law School in October 2013

Read More about Colleen >

 

Check Application Status

Students listening to classroom lecture

Once you've submitted your application, you can login and track your status by using the link below.

Check Status