Abstract
In this paper, we reconsider the theory of investment and finance with imperfect capitalmarket from an analytical point of view. First, we present a simplified static model whichintegrates Keynes' approach to investment determination and Kalecki's approach to the“principle of increasing risk”, and investigate the relationships between this model andTobin's q theory. The second part of this paper tries to extend the basic model to the modelof investment and finance in a truly dynamic environment by utilizing the analytical framework which was presented by Asada and Semmler [2].
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Asada, T. Investment and finance: A theoretical approach. Annals of Operations Research 89, 75–87 (1999). https://doi.org/10.1023/A:1018996211649
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DOI: https://doi.org/10.1023/A:1018996211649