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Capital market imperfections, uncertainty and corporate investment in the Czech Republic

Author

Listed:
  • Lensink, R.
  • Sterken, Elmer

    (Groningen University)

Abstract
The well-known Klein-Monti model of bank behavior considers a monopolistic bank. We demonstrate that this model’s results on the comparative static effects of a change in the exogenous interbank market interest rate do not necessarily hold in oligopolistic Cournot or Stackelberg generalizations. Introducing asymmetries in the cost functions of the banks, or in their way of conduct, may imply counterintuitive effects on the individual banks’ volumes of loans and deposits. Keywords: Bank behavior, Cournot oligopoly, Stackelberg oligopoly

Suggested Citation

  • Lensink, R. & Sterken, Elmer, 1999. "Capital market imperfections, uncertainty and corporate investment in the Czech Republic," Research Report 99E51, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:99e51
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    File URL: http://irs.ub.rug.nl/ppn/190864494
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    References listed on IDEAS

    as
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    Cited by:

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    2. Aytekin GÜVEN & Arzu AKKOYUNLU-WIGLEY, 2018. "The Effects of Market Structure on Uncertainty-Investment Relationship: Evidence from Turkish Manufacturing Industry," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    3. Ulf von Kalckreuth, 2003. "Exploring the role of uncertainty for corporate investment decisions in Germany," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 139(II), pages 173-206, June.
    4. Chien-Jen Wang & Po-Chin Wu & Yu-Ming Lu, 2011. "Twin-Rate Uncertainty, Debt And Investment Decisions– Evidence From Dow Jones Panel Data," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(1), pages 15-26.
    5. Fioretti, Guido, 2006. "Recognising investment opportunities at the onset of recoveries," Research in Economics, Elsevier, vol. 60(2), pages 69-84, June.
    6. Bo, Hong & Zhang, Zhihai, 2002. "The impact of uncertainty on firm investment: evidence from machinery industry in Liaoning province of China," Economic Systems, Elsevier, vol. 26(4), pages 335-352, December.
    7. Guido Fioretti, 2002. "The Investment Acceleration Principle Revisited by Means of a Neural Net," Computational Economics 0207002, University Library of Munich, Germany.
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    9. Trinh, Q. Long & Morgan, Peter J. & Sonobe, Tetsushi, 2020. "Investment behavior of MSMEs during the downturn periods: Empirical evidence from Vietnam," Emerging Markets Review, Elsevier, vol. 45(C).
    10. Murat Isik, 2004. "Incentives for Technology Adoption Under Environmental Policy Uncertainty: Implications for Green Payment Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(3), pages 247-263, March.
    11. Cechura, Lukas, 2008. "Investment, Credit Constraints And Public Policy In A Neoclassical Adjustment Cost Framework," IAMO Discussion Papers 91954, Institute of Agricultural Development in Transition Economies (IAMO).
    12. Giorgio Calcagnini & Germana Giombini & Enrico Saltari, 2009. "Firms? Investment in the Presence of Labor and Financial Market Imperfections," Working Papers 0901, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2009.
    13. Keagile Lesame, 2021. "The asymmetric impact of economic policy uncertainty on firm-level investment in South Africa: Firm-level evidence from administrative tax data," WIDER Working Paper Series wp-2021-52, World Institute for Development Economic Research (UNU-WIDER).

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