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The Substitution Elasticity, Factor Shares, Long-Run Growth, and the Low-Frequency Panel Model
Chirinko, Robert S.; Mallick, Debdulal - CESifo - 2014
Friedman’s permanent income theory of consumption and Eisner’s related permanent income theory of investment. While their …
Persistent link: https://www.econbiz.de/10011067194
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Capacity Decisions with Demand Fluctuations and Carbon Leakage
Meunier, Guy; Ponssard, Jean-Pierre - CESifo - 2014
For carbon-intensive, internationally-traded industrial goods, a unilateral increase in the domestic CO2 price may result in the reduction of the domestic production but an increase of imports. In such sectors as electricity, cement or steel, the trade flows result more from short-term regional...
Persistent link: https://www.econbiz.de/10010877725
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Booms, Recessions and Financial Turmoil: A Fresh Look at Investment Decisions under Cyclical Uncertainty
Chen, Yu-Fu; Funke, Michael - CESifo - 2009
shows that macroeconomic risk acts as an important deterrent to investments. …
Persistent link: https://www.econbiz.de/10005013955
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When Credit Dries Up: Job Losses in the Great Recession
Bentolila, Samuel; Jansen, Marcel; Jiménez, Gabriel; … - CESifo - 2013
We use a unique dataset to estimate the impact of a large credit supply shock on employment in Spain. We exploit marked differences in banks’ health at the onset of the Great Recession. Several weak banks were rescued by the State and they reduced credit more than other banks. We compare...
Persistent link: https://www.econbiz.de/10010723542
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Announcing is Bad, Delaying is Worse: Another Pitfall in Well-Intended Climate Policy
Jus, Darko; Meier, Volker - CESifo - 2012
It is frequently observed that the implementation of green policies is delayed compared to the initial announcement. Considering a setting with a representative monopolist extracting a non-renewable resource, we demonstrate that announcing a green policy, but then delaying its implementation, is...
Persistent link: https://www.econbiz.de/10010752787
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A Critique of the Literature on the US Financial Debt Crisis
Stein, Jerome L. - CESifo - 2010
A healthy financial system encourages the efficient allocation of capital and risk. The collapse of the house price … stochastic optimal control (SOC)/dynamic risk management is a much more effective approach to determine the optimal degree of … leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals …
Persistent link: https://www.econbiz.de/10008534053
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Asymmetric Information and Overinvestment in Quality
Belleflamme, Paul; Peitz, Martin - CESifo - 2009
In a standard adverse selection world, asymmetric information about product quality leads to quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of...
Persistent link: https://www.econbiz.de/10005000399
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Application of Stochastic Optimal Control to Financial Market Debt Crises
Stein, Jerome L. - CESifo - 2009
This interdisciplinary paper explains how mathematical techniques of stochastic optimal control can be applied to the recent subprime mortgage crisis. Why did the financial markets fail to anticipate the recent debt crisis, despite the large literature in mathematical finance concerning optimal...
Persistent link: https://www.econbiz.de/10005094473
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Entrepreneurship, Organization Capital and the Evolution of the Firm
Oshima, Atsushi; Ravikumar, B.; Riezman, Raymond - CESifo - 2008
We view the entrepreneur as an agent who possesses human capital in the form of specific skills or talents. When she starts a firm, her human capital is essential to the firm and it has substantial private value. The entrepreneur transforms her human capital over time into what we call...
Persistent link: https://www.econbiz.de/10005181266
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A Simple Explanation for the Unfavorable Tax Treatment of Investment Costs
Panteghini, Paolo - CESifo - 2006
The evidence shows that in most countries the present value of depreciation allowances is less than 100% of the cost of capital. In this article we use a real-option model with debt financing, and show that less favorable depreciation allowances are offset by tax benefits arising from debt...
Persistent link: https://www.econbiz.de/10005181423