Showing 1 - 10 of 2,348
In this paper, we focus on managerial characteristics of micro and small-sized firms. Using linked employer-employee data on the Portuguese economy for the 2010-2018 period, we estimate the impact of management teams' human capital on the probability of firms becoming financially distressed and...
Persistent link: https://www.econbiz.de/10012294788
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
A rich but tractable variant of the Burdett-Mortensen model of wage setting behavior is formulated and a dynamic market equilibrium solution to the model is defined and characterized. In the model, firms cannot commit to wage contracts. Instead, the Markov perfect equilibrium to the wage setting...
Persistent link: https://www.econbiz.de/10009312108
This paper proposes a theoretical framework to analyze the impacts of credit and technology shocks on business cycle dynamics, where firms rely on banks and households for capital financing. Firms are identical ex ante but differ ex post due to different realizations of firm specific technology...
Persistent link: https://www.econbiz.de/10009488413
While many employees risk losing their job and having their career disrupted due to employers' financial distress, it is widely recognized that many leave their employer in anticipation of layoff. In this paper, we assess how employee costs of financial distress depend on employees learning and...
Persistent link: https://www.econbiz.de/10015075348
We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the calibrated model matches important quantitative...
Persistent link: https://www.econbiz.de/10009244090
surge in the stock market would be self-correcting. Recent papers have discussed the role of "uncertainty" and its … measurement in influencing economic decisions. They attempt to measure uncertainty by indexes of volatility of the stock market …, GDP, forecaster disagreement, mentions of uncertainty in news media, and the dispersion of productivity shocks to firms …
Persistent link: https://www.econbiz.de/10011543578
of uncertainty and of rationing efficiency. We show that regulatory uncertainty does not diminish the rationale for … intervention, but may require a low minimum wage that may not bind. With expected earnings-maximization, greater uncertainty widens …
Persistent link: https://www.econbiz.de/10011407940
the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the … of a central bank's interest rate policy, e.g. in times of low or even zero interest rates and high uncertainty, in terms …
Persistent link: https://www.econbiz.de/10012099522
percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …-whole (full) compensation and mean and median work incomes. Given that consumption uncertainty associated with compensation …
Persistent link: https://www.econbiz.de/10012034365