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Optimal Capital Allocation Using RAROC(tm) and EVA
Stoughton, Neal; Zechner, Josef - C.E.P.R. Discussion Papers - 2004
This Paper analyses firms’ capital allocation decisions when optimal capital structure is linked to the risk of underlying assets and when equity capital is costly and cannot be raised instantaneously. In the model, division managers receive private information and authority is delegated to...
Persistent link: https://www.econbiz.de/10005662320
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Short-Termism as Optimal Investment Policy
Brusco, Sandro - C.E.P.R. Discussion Papers - 1999
Models of managerial short-termism rely on a number of assumption, such as limited availability of capital, fixed compensation schemes and an additive impact of managerial ability on revenue. We discuss the role of these assumption in generating short-termism. We show that when managerial...
Persistent link: https://www.econbiz.de/10005791287
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Corporate Efficiency in Europe
Hanousek, Jan; Kocenda, Evzen; Shamshur, Anastasiya - C.E.P.R. Discussion Papers - 2015
Using a stochastic frontier model and a comprehensive dataset, we study factors that affect corporate efficiency in … efficiency, and (iii) high competition is less conductive to efficiency than moderate or low competition. In terms of ownership …, we find that (iv) efficiency increases when a majority owner must deal with minority shareholders and that (v) domestic …
Persistent link: https://www.econbiz.de/10011213309
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Simultaneous Search and Network Efficiency
Gautier, Pieter A; Holzner, Christian - C.E.P.R. Discussion Papers - 2011
When workers send applications to vacancies they create a network. Frictions arise if workers do not know where other workers apply to (this affects network creation) and firms do not know which candidates other firms consider (this affects network clearing). We show that those frictions and the...
Persistent link: https://www.econbiz.de/10009246606
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Inattention to Rare Events
Mackowiak, Bartosz Adam; Wiederholt, Mirko - C.E.P.R. Discussion Papers - 2011
Why were people so unprepared for the global financial crisis, the European debt crisis, and the Fukushima nuclear accident? To address this question, we study a model in which agents make state-contingent plans - think about actions in different contingencies - subject to the constraint that...
Persistent link: https://www.econbiz.de/10009351517
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Assessing the impact of Mali’s water privatization across stakeholders
Estache, Antonio; Grifell-Tatjé, Emili - C.E.P.R. Discussion Papers - 2011
shows that taxpayers are the main losers as subsidies are still needed. There are also serious efficiency-equity trade …
Persistent link: https://www.econbiz.de/10009399719
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Flat Tax Reforms in the US: A Boon for the Income Poor
Díaz-Giménez, Javier; Pijoan-Mas, Josep - C.E.P.R. Discussion Papers - 2006
In this article we quantify the aggregate, distributional and welfare consequences of two revenue neutral flat-tax reforms using a model economy that replicates the U.S. distributions of earnings, income and wealth in very much detail. We find that the less progressive reform brings about a 2.4%...
Persistent link: https://www.econbiz.de/10005662104
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The Term Structure of Forward Exchange Premia and the Forecastability of Spot Exchange Rates: Correcting the Errors
Clarida, Richard; Taylor, Mark P - C.E.P.R. Discussion Papers - 1993
This paper challenges the widespread view that forward exchange premia contain little information regarding subsequent spot rate movements. Using weekly dollar/Deutschmark and dollar/sterling data, we show that spot and forward exchange rates are well represented by a vector error correction...
Persistent link: https://www.econbiz.de/10005662140
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Credit Risk Transfer and Financial Sector Performance
Marsh, Ian W; Wagner, Wolf - C.E.P.R. Discussion Papers - 2004
In this Paper we study the impact of credit risk transfer (CRT) on the stability and the efficiency of a financial …
Persistent link: https://www.econbiz.de/10005662362
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Training and Unions
Booth, Alison L; Chatterji, Monojit - C.E.P.R. Discussion Papers - 1997
The paper examines the optimal level of training investment when trained workers are mobile, wage contracts are time-consistent, and training comprises both specific and general skills. It is shown that, in the absence of a social planner, the firm has ex-post monopsonistic power that drives...
Persistent link: https://www.econbiz.de/10005666579