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Cited by 879

The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.

Too Much Investment: A Problem of Asymmetric Information

Meza, David De, Webb, David C.·1987·The Quarterly Journal of Economics
DOI 10.2307/1885064
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Abstract

This paper shows that under plausible assumptions, the inability of lenders to discover all of the relevant characteristics of borrowers results in investment in excess of the socially efficient level. Raising the rate of interest above the free market level will restore optimality. This conflicts with generally held views and is contrasted with the Stiglitz-Weiss model. It is shown that the assumptions which yield overinvestment support debt as the equilibrium method of finance. However, under the Stiglitz-Weiss assumptions, used to derive an underinvestment result, equity is shown to be the equilibrium method of finance.

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Metadata

Authors
Meza, D. D., & Webb, D. C.
Venue
The Quarterly Journal of Economics
Publisher
Oxford University Press (OUP)
Published
1987-05
Volume
102
Issue
2
Pages
281
ISSN
0033-5533 (ISSN-L)
DOI
10.2307/1885064
OpenAlex
W2083335474
Cited by
879
References
2
FWCI
18.08
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Too Much Investment: A Problem of Asymmetric Information. https://app.cochat.ai/papers/10.2307/1885064
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Meza, D. D., & Webb, D. C. (1987). Too Much Investment: A Problem of Asymmetric Information. The Quarterly Journal of Economics. https://doi.org/10.2307/1885064

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.