Charles, Sébastien <br/><br/>
Dividend Policy and Macroeconomic Stability 

 -  2012.<br/>							 
<br/><br/> 95 
<br/><br/> This paper explores the consequences of an endogenous dividend policy in the context of a Cambridge model of growth and distribution. In this context, we will consider the interactions between the retention ratio and the level of debt and investigate the conditions for macroeconomic stability. We will then show how financial instability is caused by less prudent behavior from corporate executives with regard to the payment of dividends. Finally, we will use numerical simulations to illustrate previous results.