Adding a stage of signal acquisition to the expected utility model shows that Bayesian updating results in a well de¯ned law of demand for financial information when asset return distributions are conjugate priors to signals such as in the gamma-Poisson case. Signals have a positive marginal...

Production function estimation with micro-data shows that a persistent unobserved variable varies within firm or plant over time but resists treatment and may cause biases. This paper presents an estimation model of the firm under endogenous productivity change. The model implies that (i) the...

Linked employer-employee data for Brazil over a period of large-scale trade liber- alization document two salient workforce changeovers. Within the traded-goods sector, there is a marked occupation downgrading and a simultaneous education upgrading by which employers ¯ll expanding low-skill...

Brazil's trade liberalization between 1990 and 1993, and its partial re- versal in 1995, are used to study how reduced inward trade barriers affect productivity. The production function of Brazilian manufactur- ers is estimated at the ISIC3 two-digit level under various alternatives, including...

We employ a comprehensive matched employer-employee data set for Brazil to analyze wage determinants and compare results to Abowd, Kramarz, Margolis and Troske (2001) for French and U.S. manufacturing. Returns to education and experience in Brazilian manufacturing exceed those of the other...

Multinational labor deman responds to wage differentials at the extensive margin, when a multinational enterprise (MNE) expands into foreign locations, and at the intensive margin, when an MNE operates existing affiliates across locations. We derive conditions for parametric and nonparametric...

Multinational labor demand responds to wage differentials at the extensive margin, when a multinational enterprise (MNE) expands into foreign locations, and at the intensive margin, when an MNE operates existing affiliates across locations. We derive conditions for parametric and nonparamtric...

Tracking individual workers across employers and industries after Brazil's trade liberalization in the 1990's shows that foreign import penetration and tariff reductions trigger worker displacements but that neither comparative-advantage industries nor exporters absorb displaced workers for...

Using data for German and Swedish multinational enterprises (MNEs), this paper assesses international employment patterns. It analyzes determinants of location choice and the degree of substitutability of labor across locations. Countries with highly skilled labor forces attract German MNEs, but...

Add an opening stage of signal acquisition to a canonical portfolio choice model and let investors have rational expectations about the ensuing Walrasian equilibrium. The expected marginal utility of a signal (its action value) falls in the number of signals and turns strictly negative at a...