This note proposes the continuous treatment approach as a valuable alternative to propensity score matching for evaluating economic effects of mergers and acquisitions (M&As). This framework allows to consider the variation in treatment intensities explicitly, and it does not call for the...

We provide evidence on the impact of globalisation on labour market outcomes analysing pay differences between foreign-acquired and domestically-owned firms. For this purpose, we use firm level data from 16 European countries over the time period 1999 to 2006. Applying propensity score matching...

This paper presents a theoretical model and empirical evidence to explain the occurrence of tax amnesties. We treat amnesties as endogenous, resulting from a strategic game between many tax payers discounting future payments from punishment and a government that trades off costs and benefits of...

This paper shows that applying simple employment-weighted OLS estimation to Davis – Haltiwanger – Schuh (1996) firm level job creation rates taking the values 2 and –2 for entering and exiting firms, respectively, provides biased and inconsistent parameter estimates. Consequently, we argue...

Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single...

Based on a structural model for initial firm size, survival and firm growth we estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows an assessment of the impact of different (counterfactual) economic policy measures on intra-distribution...

This paper discusses two alternative two-part models for fractional response variables that are defined as ratios of integers. The first two-part model assumes a Binomial distribution and known group size. It nests the one-part fractional response model proposed by Papke and Wooldridge (1996)...

This paper analyses the impact of corporate taxation on a firm's debt policy. We contribute to the existing literature in two ways: 1. we incorporate firm heterogeneity with respect to firm size and legal form, 2. we explicitly model persistence in the debt-to-asset ratio. Econometrically this...

This paper analyses the relationship between corporate taxation, firm age and debt. We adapt a standard model of capital structure choice under corporate taxation, focusing on the financing and investment decisions a firm is typically faced with. Our model suggests that the debt ratio is...