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This paper develops a novel theory of capital mis-allocation within firms that stems from managers’ empire building and informational frictions within the organization. Introducing an internal capital market into a two-factor model of multi-segment firms, we show that international competition...
Persistent link: https://www.econbiz.de/10013312862
suppliers’ decisions to invest, and where underinvestment is more severe for higher productivity firms. A rule of origin offers … within the trading bloc. Such a rule alters behavior for only a subset of suppliers, as some (very-high-productivity …) suppliers comply with the rule in an unconstrained way and some (very-low-productivity) suppliers choose not to comply. For …
Persistent link: https://www.econbiz.de/10014077185
I critically review recent studies that estimate those costs of violence and conflict that can emerge among organized political groupings, from states, religious and ethnic organizations to guerillas and paramilitaries. The review includes studies that estimate direct and indirect costs due to...
Persistent link: https://www.econbiz.de/10010267051
This paper studies the determinants of foreign land acquisition for large-scale agriculture. To do so, gravity models are estimated using data on bilateral investment relationships, together with newly constructed indicators of agro-ecological suitability in areas with low population density as...
Persistent link: https://www.econbiz.de/10010280643
Following the collapse of planning, new small and medium-sized firms rapidly emerged in all transition economies. Using … formerly planned economies with those in economies outside transition, we document not only the challenges faced by transition …
Persistent link: https://www.econbiz.de/10010288245
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