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Investment and Value: A Neoclassical Benchmark
Eberly, Janice; Rebelo, Sérgio; Vincent, Nicolas - C.E.P.R. Discussion Papers - 2008
Which investment model best fits firm-level data? To answer this question we estimate alternative models using … implication, that Q is a sufficient statistic for determining a firm's investment decision, has been often rejected because cash …-flow and lagged-investment effects are present in investment regressions. However, we find that these regression results are …
Persistent link: https://www.econbiz.de/10005791890
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Liquidity Constraints and Linkages with Multinationals
Javorcik, Beata; Spatareanu, Mariana - C.E.P.R. Discussion Papers - 2008
investment (FDI) are most likely to take place through contacts between MNCs and their local suppliers, our finding suggests that …
Persistent link: https://www.econbiz.de/10005497887
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What Explains the Lagged Investment Effect?
Eberly, Janice; Rebelo, Sérgio; Vincent, Nicolas - C.E.P.R. Discussion Papers - 2011
The best predictor of current investment at the firm level is lagged investment. This lagged-investment effect is … empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment … costs proposed by Christiano, Eichenbaum and Evans (2005) predicts the presence of a lagged-investment effect and that a …
Persistent link: https://www.econbiz.de/10008925713
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Stock Market Returns, Corporate Governance and Capital Market Equilibrium
Parigi, Bruno; Pelizzon, Loriana; von Thadden, Ernst-Ludwig - C.E.P.R. Discussion Papers - 2015
This paper analyzes why corporate governance matters for stock returns if the stock market prices the underlying managerial agency problem correctly. Our theory assumes that strict corporate governance prevents managers from diverting cash flows, but reduces incentives for managerial effort. In...
Persistent link: https://www.econbiz.de/10011165663
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Home Bias at the Fund Level
Hau, Harald; Rey, Hélène - C.E.P.R. Discussion Papers - 2008
This paper presents new stylized facts on the distribution of the home bias at the fund level. We find (i) a large heterogeneity in the degree of home bias across mutual funds; (ii) a positive correlation between the size of funds and home bias; and (iii) a positive correlation between the size...
Persistent link: https://www.econbiz.de/10005791444
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Democratic Capital: The Nexus of Political and Economic Change
Persson, Torsten; Tabellini, Guido - C.E.P.R. Discussion Papers - 2006
We study the joint dynamics of economic and political change. Predictions of the simple model that we formulate in the paper get considerable support in a panel of data on political regimes and GDP per capita for about 150 countries over 150 years. Democratic capital - measured by a nation's...
Persistent link: https://www.econbiz.de/10005791276
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Economic growth and the rise of political extremism: theory and evidence
Brückner, Markus; Grüner, Hans Peter - C.E.P.R. Discussion Papers - 2010
In many western democracies, political parties with extreme platforms challenge more moderate incumbents. This paper analyses the impact of economic growth on the support for extreme political platforms. We provide a theoretical argument in favor of growth effects (as opposed to level effects)...
Persistent link: https://www.econbiz.de/10008530375
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Free Trade Agreements and the Consolidation of Democracy
Liu, Xuepeng; Ornelas, Emanuel - C.E.P.R. Discussion Papers - 2013
We study the relationship between participation in free trade agreements (FTAs) and the sustainability of democracy. Our model shows that FTAs can critically reduce the incentive of authoritarian groups to seek power by destroying protectionist rents, thus making democracies last longer. This...
Persistent link: https://www.econbiz.de/10011083505
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Heterogeneity of Preferences, Limited Commitment and Coalitions: Empirical Evidence on the Limits to Risk Sharing in Rural Pakistan
Dubois, Pierre - C.E.P.R. Discussion Papers - 2006
implications in rural Pakistan taking into account the heterogeneity of households' preferences. Our results show that exogenous …
Persistent link: https://www.econbiz.de/10005791230
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Investment and capital structure of partially private regulated firms
Cambini, Carlo; Spiegel, Yossi - C.E.P.R. Discussion Papers - 2011
We develop a model that examines the capital structure and investment decisions of regulated firms in a setting that …
Persistent link: https://www.econbiz.de/10009209829