The third essay surveys a broad literature on the issue of global imbalances. It presents the empirical evidence on the issue and reviews the different theories on the causes and sustainability of global imbalances which I pay particular attention to two recent papers that use a formal model emphasizing the cross-country heterogeneity of the level of financial development to address the phenomenon.This, however, leads to a lower resell price in case they need to sell their projects for liquidity reasons due to the lemon type asymmetric information problem between the investors and the potential buyers. As a result of this tradeoff, anbsp;...
|Title||:||Essays on Financial Frictions and Heterogeneous Firms in International Economics|
|Publisher||:||ProQuest - 2008|