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Hidden action, identification, and organization design
Schnedler, Wendelin - 2010
Incentives often fail in inducing economic agents to engage in a desirable activity; implementability is restricted. What restricts implementability? When does re-organization help to overcome this restriction? This paper shows that any restriction of implementability is caused by an...
Persistent link: https://www.econbiz.de/10009303451
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Management compensation and firm-level income inequality
Frederiksen, Anders (contributor);  … - 2008
management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a … general equilibrium model. Empirical estimation, of the model's key parameters show that the rising management premium is … rising management premium produces income distribution dynamics at the firm level which are similar to those observed at the …
Persistent link: https://www.econbiz.de/10003754931
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How do industries and firms respond to changes in local labor supply?
Dustmann, Christian; Glitz, Albrecht - 2011
In this paper, we investigate how changes in the skill mix of local labor supply are absorbed by the economy. We distinguish between three adjustment mechanisms: through factor prices, through an expansion in the size of those production units that use the more abundant skill group more...
Persistent link: https://www.econbiz.de/10009524993
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Intra firm bargaining and shapley values
Bruegemann, Bjoern; Gautier, Pieter; Menzio, Guido - 2015
The paper revisits the problem of wage bargaining between a firm and multiple workers. We show that the Subgame Perfect Equilibrium of the extensive-form game proposed by Stole and Zwiebel (1996a) does not imply a profile of wages and profits that coincides with the Shapley values as claimed in...
Persistent link: https://www.econbiz.de/10011317659
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Heterogeneous firms, trade, and economic policy : insights from a simple two-sector model
Pflüger, Michael; Russek, Stephan - 2011
The robust empirical finding that exporting firms are systematically different from firms that merely serve domestic consumers has inspired the development of a new brand of trade theory, the theory of heterogeneous firms and trade. The establishment of a canonical model due to Melitz (2003) has...
Persistent link: https://www.econbiz.de/10009519889
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Business conditions and default risks across countries
Pflüger, Michael; Russek, Stephan - 2011
The risk of default that business firms face is very significant and differs widely across countries. This paper explores the links between countries' business conditions and international trade embedment and the default risk at the country level from a theoretical point of view. Our main...
Persistent link: https://www.econbiz.de/10009232302
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Minimum wages and insurance within the firm
Adamopoulou, Effrosyni; Manaresi, Francesco; Rachedi, Omar - 2021
Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger pass-through of firm-specific labor-demand...
Persistent link: https://www.econbiz.de/10012795332
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Firm heterogeneity, informal wage and good governance
Kar, Saibal; Marjit, Sugata - 2011
We provide an analysis of enforcement policies applicable to formal sector in dual labor markets. We use a framework with heterogeneous firms, endogenous determination of informal wage and politically dictated enforcement strategies. Firms which operate both in the formal and informal sectors do...
Persistent link: https://www.econbiz.de/10009422227
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How Darwinian should an economy be?
Saint-Paul, Gilles - 2014
This paper studies aggregate dynamics in a cobweb model where learning takes place through a selection mechanism, by which more successful firms are replicated at a higher rate. The structure of the model allows to characterize analytically the aggregate dynamics, and to compute the effect on...
Persistent link: https://www.econbiz.de/10010440555
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Using firm optimization to evaluate and estimate returns to scale
Gorodnichenko, Yuriy (contributor) - 2008
At the firm level, revenue and costs are well measured but prices and quantities are not. This paper shows that because of these data limitations estimates of returns to scale at the firm level are for the revenue function, not production function. Given this observation, the paper argues that,...
Persistent link: https://www.econbiz.de/10003656928