Download or read book Essays on Productivity Uncertainty and Firm Activities written by Shengyu Li and published by . This book was released on 2014 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Honor of Subal Kumbhakar written by Christopher F. Parmeter and published by Emerald Group Publishing. This book was released on 2024-04-05 with total page 487 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is the editor’s distinct privilege to gather this collection of papers that honors Subhal Kumbhakar’s many accomplishments, drawing further attention to the various areas of scholarship that he has touched.

Download or read book Three Essays on Investment Under Uncertainty written by Gaurav Atreyi Kankanhalli and published by . This book was released on 2020 with total page 199 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, I explore how economic agents conduct their investment decisions under uncertainty. Each of the three chapters empirically tests predictions from real-options frameworks of investment under uncertainty, shedding light on novel dimensions of agents' investment responses to uncertainty. In the first chapter, I study how the startup ecosystem responds to uncertainty. In the second chapter, I empirically measure the international transmission of uncertainty by examining US firms' investment responses to uncertainty induced by the 2016 Brexit Referendum. In the third chapter, I examine how uncertainty affects not only the level, but also the composition, of firms' capital stock using data on global shipping firms' investment and disinvestment decisions. Chapter 1 shows that economic uncertainty boosts dynamism among US startups. I introduce news- and survey-based measures of startup-relevant uncertainty and find that uncertainty is associated with net firm creation, and net job creation among young firms. I identify the channel by demonstrating, in a real-options framework, that venture capitalists (VCs) adjust their portfolios to take advantage of uncertainty. In contrast to mature firms delaying investment when facing uncertainty, VCs increase their investment spending during periods of heightened uncertainty, but do so by funding a large number of startups at low valuations. Critically, these dynamics play out solely at the earliest funding stages, implying greater experimentation by VCs. Buoyed by increased VC funding, startups accelerate their investment in technology and labor, producing more innovation and gaining greater traction. Looking at eventual outcomes, I provide evidence that startups receiving funding during high uncertainty periods are more likely to either fail or have exits with high multiples. My results point to uncertainty playing an important role in spurring "creative destruction" by stimulating risky startup activity in the economy. Chapter 2 (joint with Murillo Campello, Gustavo S. Cortes, and Fabricio D'Almeida) shows that the 2016 Brexit Referendum led American corporations to cut jobs and investment within US borders. Using establishment-level data, we document that these effects were modulated by the degree of reversibility of capital and labor. American job losses were particularly pronounced in industries with less skilled and more unionized workers. UK-exposed firms with less redeployable capital and high input-offshoring dependence cut investment the most. Data on the near-universe of US establishments also point to measurable, negative effects on establishment turnover (openings and closings). Our results demonstrate how foreign-born political uncertainty is transmitted across international borders, shaping domestic capital formation and labor allocation. Chapter 3 (joint with Murillo Campello and Hyunseob Kim) studies how economic uncertainty affects corporate asset composition and productivity using near-universe data on shipping firms' new orders, secondary-market transactions, and demolition of ships. Using a real-options framework, we show that shipping firms curtail both the acquisition and disposal of ships in response to heightened uncertainty. Critically, this mechanism operates primarily through cuts in new ship orders and demolition of older vessels -- decisions that are harder to reverse vis-a-vis deals in the used ship market. We use the escalation in Somali pirate attacks from 2009-2011 as a plausibly exogenous shock to uncertainty and find consistent results. The dynamics we identify are more pronounced when secondary ship markets are less liquid, as firms face stronger incentives to delay their decisions. Our results are novel in showing that uncertainty hampers "creative destruction" among mature firms in which these firms adopt technological innovation emobdied in newer capital and dispose of old-vintage capital.

Download or read book Essays on Incomplete Information Model Uncertainty and Macroeconomic Policy written by Giacomo Rondina and published by . This book was released on 2007 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Risk Uncertainty and Profit written by Frank H. Knight and published by Cosimo, Inc.. This book was released on 2006-11-01 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.

Download or read book Essays on Market Frictions Economic Shocks and Business Fluctuations written by Seungho Nah and published by . This book was released on 2010 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: In the first essay, 'Financial Frictions, Intersectoral Adjustment Costs, and News-Driven Business Cycles', I show that an RBC model with financial frictions and intersectoral adjustment costs can generate sizable boom-bust cycles and plausible responses of stock prices in response to a news shock. Booms in the labor market, which make it possible for both consumption and investment to increase in response to positive news, are caused through two channels: the increases in value of marginal product of labor and the increases in value of collateral. Both of these channels enable firms to hire more workers. Intersectoral adjustment costs contribute to both channels by increasing the relative price of output and capital during expansions. Financial frictions enter in the forms of collateral constraints on firms, which influence the latter channel, and the financial accelerator mechanism driven by agency costs, which amplifies all the key variables. My model differs from previous studies in its ability to generate boom-bust cycles without restricting the functional form of consumption in household preferences and without requiring investment adjustment costs, variable capital utilization, or any nominal rigidities. In the second essay, 'Financial and Real Frictions as Sources of Business Fluctuations', I show that a negative shock to a financial or real friction in an economy can generate quantitatively significant and persistent recessions, even without a decrease in exogenous aggregate total factor productivity in a heterogeneous agents DSGE model. The increase in uncertainty that a firm is facing when it makes capital adjustment, however, is found to have a limited or dubious influence on economic activities. The roles of collateral constaints as a financial friction and nonconvex capital adjustment costs as a real friction in aggregate fluctuations are examined in this propagation mechanism. When these frictions become strengthened, the degree of capital misallocation is intensified, which leads to a drop of endogenous aggregate total factor productivity. As agents expect that the return to investment and endogenous TFP decrease, they reduce aggregate investment sharply, which also leads to a drop in employment. Interruption of efficient resource allocation coming from these two frictions is found out to be enough to generate a large and persistent aggregate flucutations even without introducing heterogeneity in firm-level productivity.

Download or read book Essays in Accounting Theory in Honour of Joel S Demski written by Rick Antle and published by Springer Science & Business Media. This book was released on 2007-02-15 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: The integration of accounting and the economics of information developed by Joel S. Demski and those he inspired has revolutionized accounting thought. This volume collects papers on accounting theory in honor of Professor Demski. The book also contains an extensive review of Professor Demski’s own contributions to the theory of accounting over the past four decades.

Download or read book Essays on Information Problems in Environmental and Labor Economics written by Casey Michael Bolt and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three essays examining problems of incomplete information in the context of environmental and labor economics. The first essay studies regulation of firms that engage in hazardous activities under uncertainty. A theoretical model is developed for three cases: manager's attitudes toward uncertainty are (1) risk averse, (2) risk loving, and (3) ambiguity averse. Ambiguity aversion is modeled using the smooth model of decision making. We show that uncertainty averse attitudes induce over-investment in precaution that reduces hazard. Our main result is in stark contrast to previous findings in which uncertainty causes firms to invest less in precaution. The second essay studies a job market signaling game between firms and three types of workers with heterogeneity in productivity and costs of working and acquiring education. Workers choose to enter the job market or not and if they enter whether to receive a productivity enhancing education or not. This is observed by the firm and acts as a signal to the firm but not the government. The government imposes a constant wage tax and rebates the revenue in lump sum transfers. We provide conditions on wages for ten possible sustainable equilibria that depend on productivity, costs, the tax rate, and transfers. The third essay extends the job market signaling game from chapter 2 between a representative firm and three types of workers with heterogeneity in productivity and costs of working and costs of acquiring education. Workers choose to enter the job market or not, and whether to receive a productivity enhancing education or not. Monopsonist firms choose wages to maximize profit. The government chooses linear taxes on wages and profits and rebates the revenue in lump sum transfers to maximize utilitarian social welfare function composed of the utility of the workers. Policy may offset the labor market power of the firm The optimal tax policy includes effective negative wage tax rates for workers and a positive profit tax rate which is facilitated through positive transfers to workers that includes a "basic income".

Download or read book Essays on Firms Aggregate Uncertainty and the Labor Market written by Nicolò Dalvit and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is comprised of three chapters that revolve around two main themes:the micro economic incidence of macro shocks and the role of firms in determining labor market outcomes. In the first chapter I provide new evidence on the cyclical dynamics of firms. I show that firms expecting to lose market share in the futureare hit the hardest during economic downturns. This heterogeneous sensitivity provides a new rationale for the observed counter-cyclical dispersion in firms'growth rates and has implications for the dynamics of aggregate employment. The second chapter studies the role of income tax progressivity in reallocating income risk across heterogeneous workers and stabilizing the economy. We show that eliminating income tax progressivity in Italy would come at the expense of the majority of the work force. The current system of marginal tax rates is effective atreallocating cyclical income risk from low to high wage workers and reducesaggregate employment volatility compared to a counter-factual flat rate system.The third chapter considers the internal hierarchical structure of a firm and its rolein determining wages and internal promotions. We focus in particular on the rolethat internal hierarchies play in propagating gender differences in representation and pay. We study the effect of a change in the gender composition at the top afirm's internal hierarchy on workers further down the organizational ladder and findsome evidence of an effect only on layers close to the top.

Download or read book Uncertainty in Economic Theory written by Itzhak Gilboa and published by Psychology Press. This book was released on 2004 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This is the first collection to include chapters on this topic, and it can thus serve as an introduction to researchers who are new to the field as well as a graduate course textbook. With this goal in mind, the book contains survey introductions that are aimed at a graduate level student, and help explain the main ideas, and put them in perspective."--BOOK JACKET.

Download or read book Two Essays on the Firm Uncertainty and Economic Behavior written by Yuri Arenberg and published by . This book was released on 1986 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Firm Productivity written by Anik Ashraf and published by . This book was released on 2018 with total page 113 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Organizational Economics written by Michael Leslie Powell and published by . This book was released on 2011 with total page 101 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter examines the interaction of heterogeneous firms in a competitive market in which firms motivate their workers using relational incentive contracts. In the steady-state rational-expectations equilibrium, aggregate TFP is fully characterized by a weighted average of firm-specific sustainable effort levels. Relational contracts amplify exogenous productivity heterogeneity and lead to dispersion in the net marginal revenue product of labor. Improvements in formal contracting disproportionately benefits low-productivity firms, leading to a greater dispersion of the net marginal revenue product of labor in weaker contracting environments. Thus, cross-country differences in contracting institutions can partially explain the observed pattern that misallocation is more pronounced in developing countries. The second chapter explores organizational responses to influence activities-costly activities aimed at persuading a decision maker. Rigid organizational practices that might otherwise seem inefficient can optimally arise. If more complex decisions are more susceptible to influence activities, optimal selection may partially account for the observed correlation between the quality of management practices and firm performance reported in Bloom and Van Reenen (2007). Further, the boundaries of the firm can be shaped by the potential for influence activities, providing a theory of the firm based on ex-post inefficiencies. Finally, boundaries and bureaucratic institutions interact: more concentrated decision-making and bureaucratic institutions are complements. The third chapter (co-authored with Robert Gibbons and Richard Holden) analyzes a rational-expectations model of price formation in an intermediate-good market under uncertainty. There is a continuum of firms, each consisting of a party who can reduce production cost and a party who can discover information about demand. Both parties can make specific investments at private cost, and there is a machine that either party can control. As in incomplete-contracting models, different control structures create different incentives for the parties' investments. As in rational-expectations models, some parties may invest in acquiring information, which is then incorporated into the market-clearing price of the intermediate good by these parties' production decisions. The informativeness of the price mechanism affects the returns to specific investments and hence the optimal control structure for individual firms; meanwhile, the control structure choices by individual firms affect the informativeness of the price mechanism. In equilibrium the informativeness of the price mechanism can induce ex ante homogeneous firms to choose heterogeneous control structures.

Download or read book Growth of Firms Under Uncertainty written by Ashoka Mody and published by . This book was released on 1987 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Economic Psychology written by Hermann Brandstätter and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic behavior is explored from a psychological perspective by both, prominent economic psychologists with a long tradition in studying economic problems as well as economists who are open and interested in the psychological aspects of economic behavior. The contributions discuss the prospects and difficulties of this dialogue between psychology and economics and survey some important areas of research where such an interdisciplinary approach has proved to be successful. The text can also be used to introduce psychology to economists in order to give them an idea how to analyze economic problems from a psychological perspective. It also indicates many urgent and exciting research topics awaiting eager scholars to carry on the dialogue.

Download or read book Essays on Firm Productivity and Innovation written by Won Sung and published by . This book was released on 2022 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Selected Essays of John H Dunning written by John H. Dunning and published by Edward Elgar Publishing. This book was released on 2002-01-01 with total page 546 pages. Available in PDF, EPUB and Kindle. Book excerpt: These volumes should be required reading for anyone with an interest in international business and globalisation. They add immeasurably to our understanding. Mira Wilkins, Business History Dunning is one of the most prominent researchers and thinkers in the IB field. In these books, he has set out his most celebrated writings and has provided us relatively easy access to widely scattered references in the literature. Rajat Kathuria, Global Business Review The modern academic study of the multinational enterprise started with John Dunning s pioneering study of American Investment in British Manufacturing Industry in 1958. In the early 1970s he began to publish an influential and authoritative stream of papers integrating theoretical and empirical analysis of the multinational enterprise. This fascinating volume charts the evolution of John Dunning s thinking, highlighting his attempts to develop a richer, more dynamic and historical framework for the analysis of the multinational enterprise. It makes compelling reading, and offers unique insights into the intellectual development of his well-known eclectic paradigm of international production. Mark Casson, University of Reading, UK This volume contains a selection of John Dunning s best known and highly acclaimed writings on the theory of international business activity. Spanning more than three decades, the 16 contributions trace the evolution of his thoughts and ideas as an economist, from his first article on the determinants of international production, published in 1973, to his most recent essay on relational assets, networks and global business activity, completed in 2002. Theories and Paradigms of International Business Activity gives particular prominence to the author s much renowned eclectic paradigm, which he first promulgated at a Nobel Symposium on the international allocation of economic activity in 1976. Since then, the author has written over 60 articles, pamphlets and chapters in books which have extended, refined and updated his theorizing on the interface between trade, FDI and MNE activity, in the light of the changing characteristics of the world economy and advances in international business scholarship. This, the first of two volumes of John Dunning s work, is essential reading for all students, scholars and researchers with a special interest in the reasons behind the explosive growth in post-war FDI and the globalization of business activity.