Frequently, intertemporal models, for example, Uzawa's (1969) work on growth, are based on the separation of investment and the financing decisions of firms. Finance variables are disregarded. In contrast, along the lines of the theory of imperfect capital markets, the present paper allows for cross-effects between firms' financial structure and the value of firms. A steady-state analysis gives empirical predictions on the relation of investment, finance and debt, and Hopf-Bifurcation analysis establishes the possibility of cyclical paths. © 1995.