Very good sentences

The idea of the paper is that firms accumulate bad projects during a boom. They hold onto them in order to–as I would put it–save face. When someone signals the end of a boom (for example, by coming to Congress with hurried legislation to bail out banks), it becomes ok to kill off the bad projects.

That is from Arnold Kling, including a link to Grenadier, Malenko, and Strabulaev.


Comments for this post are closed