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In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit. Economists often urge governments to adopt policies that "internalize" an externality, so that costs and benefits will affect mainly parties who choose to incur them.
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In three essays I explore the e ects of nancial frictions on agents optimal decisions. market to book ratio are more likely to have positive debt and cash balances, as is of rms hold more than 20% of assets in cash while more than 20% of their assets are nanced with debt (see Figure ).
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English trust law concerns the creation and protection of asset funds, which are usually held by one party for another's benefit. Trusts were a creation of the English law of property and obligations, but also share a history with countries across the Commonwealth and the United States.
Trusts developed when claimants in property .Essays on positive assets