Showing 1 - 10 of 45
plant’s placement within the productivity distribution. Appreciations of the local currency expose domestic plants to more … plants are forced from the market, which truncates the lower end of the productivity distribution. For surviving plants …, appreciations can lead to a reduction in plant size, which, in the presence of scale economies, can lower productivity. We examine …
Persistent link: https://www.econbiz.de/10008679908
structural model that captures the effect of plantlevel productivity and real exchange rate fluctuations on plant entry and exit … unobserved potential entrant productivity, along with the cost of entry, are estimated in a second stage using the Method of … productivity, by altering the makeup of plants that populate the market. An appreciation of the local currency increases the level …
Persistent link: https://www.econbiz.de/10008461122
This paper examines the relationship between firm size and productivity. In contrast to previous studies, this paper …, the aggregate importance of the firm size-productivity relationship is gauged by calculating to what extent shifts in the … distribution of employment over firm size categories has affected Canadian aggregate productivity, and whether differences in the …
Persistent link: https://www.econbiz.de/10005162435
A large body of empirical literature investigates differences in financing structures across firms. Private firms’ financing receives little attention due to the lack of data. Using administrative confidential data on the universe of Canadian corporate firms, we compare financing relationships...
Persistent link: https://www.econbiz.de/10010849948
Macroeconomists have traditionally ignored the behavior of temporary price markdowns (“sales”) by retailers. Although sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered out. We challenge this view. First, using the...
Persistent link: https://www.econbiz.de/10010960391
Many empirical studies have examined the cyclical nature of the markup ratio. Until recently, few have attempted to ascertain the changes in the markup over a longer time horizon. These changes are of no less interest in view of the posited effects of increasing import competition and lower...
Persistent link: https://www.econbiz.de/10005256658
In many mainstream macroeconomic models, sticky prices play an important role in explaining the effects of monetary policy on the economy. Various theories have been set forth to explain why prices are sticky. This study takes a firm-level survey approach, in a spirit similar to Blinder et al....
Persistent link: https://www.econbiz.de/10005673303
The author reviews the theoretical and empirical literature to examine the traditional perception that the following trade-off exists between economic efficiency and stability in the banking system: a competitive banking system is more efficient and therefore important to growth, but market...
Persistent link: https://www.econbiz.de/10005808358
How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable. The authors use the Bank of...
Persistent link: https://www.econbiz.de/10005162398
Pricing-to-market (PTM) theory suggests that monopolistic firms which export adjust their destination-specific markups in reaction to exchange rate shocks. These adjustments limit changes in the price of their exports. Thus, important movements in the bilateral nominal exchange rate between two...
Persistent link: https://www.econbiz.de/10005536876