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WAGE DETERMINATION IN A SIMPLE HIERARCHICAL MODEL WITH A NONZERO PROBABILITY OF PROMOTION

BRUNELLO, G. - London School of Economics (LSE) - 1989

Persistent link: https://www.econbiz.de/10005776308

Video killed the radio star? Online music videos and digital music sales

Kretschmer, Tobias; Peukert, Christian - London School of Economics (LSE) - 2014

Sampling poses an interesting problem in markets with experience goods. Free samples reveal product quality and help consumers to make informed purchase decisions (promotional effect). However, sampling may also induce consumers to substitute purchases with free consumption (displacement...

Persistent link: https://www.econbiz.de/10011126443

Uncertainty and investment dynamics

Van Reenen, John; Bloom, Nick; Bond, Steve - London School of Economics (LSE) - 2006

This paper shows that, with (partial) irreversibility, higher uncertainty reduces the impact effect of demand shocks on investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed both numerically for a model with a rich mix...

Persistent link: https://www.econbiz.de/10010928730

The impact of uncertainty shocks: firm level estimation and a 9/11 simulation

Bloom, Nick - London School of Economics (LSE) - 2006

Uncertainty appears to vary strongly over time, temporarily rising by up to 200% around major shocks like the Cuban Missile crisis, the assassination of JFK and 9/11. This paper offers the first structural framework to analyze uncertainty shocks. I build a model with a time varying second...

Persistent link: https://www.econbiz.de/10010744930

Investment timing under incomplete information

Décamps, Jean-Paul; Mariotti, Thomas; Villeneuve, Stephane - London School of Economics (LSE) - 2003

We study the decision of when to invest in an indivisible project whose value is perfectly observable but driven by a parameter that is unknown to the decision maker ex ante. This problem is equivalent to an optimal stopping problem for a bivariate Markov process. Using filtering and martingale...

Persistent link: https://www.econbiz.de/10010745422

Trade and uncertainty

Novy, Dennis; Taylor, Alan M. - London School of Economics (LSE) - 2014

We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy. Firms import intermediate inputs from home or...

Persistent link: https://www.econbiz.de/10011125941

Uncertainty and the dynamics of R&D

Bloom, Nick - London School of Economics (LSE) - 2007

Uncertainty varies strongly over time, rising by 50% to 100% in recessions and by up to 200% after major economic and political shocks. This paper shows that higher uncertainty reduces the responsiveness of R&D to changes in business conditions - a “caution-effect” - making it more...

Persistent link: https://www.econbiz.de/10011071505

Technology, information and the decentralization of the firm

Acemoglu, Daron; Aghion, Philippe; Lelarge, Claire; Van … - London School of Economics (LSE) - 2006

decentralization decisions of firms. Centralized control relies on the information of the principal, which we equate with publicly … are more likely to choose decentralization. Using three datasets of French and British firms in the 1990s, we report …

Persistent link: https://www.econbiz.de/10010884642

The effects of decentralisation on public investment: evidence and four lessons from Bolivia and Colombia

Faguet, Jean-Paul - London School of Economics (LSE) - 2005

Hundreds of studies have failed to establish the effects of decentralisation on a number of important policy goals. This paper examines the cases of Bolivia and Colombia to explore decentralisation’s effects on government responsiveness and poverty-orientation. I first summarize economic data...

Persistent link: https://www.econbiz.de/10010928596

Decentralization’s effects on educational outcomes in Bolivia and Colombia

Faguet, Jean-Paul; Sanchez, Fabio - London School of Economics (LSE) - 2006

The effects of decentralization on public sector outputs is much debated but little agreed upon. This paper compares … the remarkable case of Bolivia with the more complex case of Colombia to explore decentralization’s effects on public … education outcomes. In Colombia, decentralization of education finance improved enrollment rates in public schools. In Bolivia …

Persistent link: https://www.econbiz.de/10010928741