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Global Sourcing of Complex Production Processes

Schwarz, Christian - 2010

We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the …

Persistent link: https://www.econbiz.de/10013136032

Regulation, Trust, and Cronyism in Middle Eastern Societies : The Simple Economics of 'Wasta'

Barnett, Andy - 2013

Despite being a fixture of everyday life in the Arab world, wasta, which may be thought of as special influence by members of the same group or tribe, has received little attention from social scientists. Our casual empiricism suggests that wasta is an important determinant of how economic...

Persistent link: https://www.econbiz.de/10013086661

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

Chetty, V. Karuppan; Heckman, James J. - 2022

This paper considers the consequences of a two-sector vertically-integrated model of firms producing output using firm-specific capital with a second sector producing firm-specific capital by adapting raw capital purchased in the market. Analysts rarely observe each sector separately....

Persistent link: https://www.econbiz.de/10014241682

Supply Theory Sans Profit-Maximization

Dasgupta, Indraneel - 2009

predictive content of the traditional theory of competitive supply. A number of key results in the deterministic theory follow as … predictive content of the classical theory of competitive firm behavior from its a priori roots in profit maximization, while … subsuming the traditional theory as a special case …

Persistent link: https://www.econbiz.de/10012764663

Use and Abuse of Authority : A Behavioral Foundation of the Employment Relation

Bartling, Björn - 2012

, endogenous formation of efficient long-run employment relations. Our results inform the theory of the firm by showing how …

Persistent link: https://www.econbiz.de/10013096768

Resource Allocation and Firm Scope

Friebel, Guido; Raith, Michael - 2021

We develop a theory of firm scope in which integrating two firms into one facilitates the allocation of resources, but … leads to weaker incentives for effort, compared with nonintegration. Our theory makes minimal assumptions about the … integration or non-integration is optimal. Our theory thus provides a simple answer to Williamson's "selective …

Persistent link: https://www.econbiz.de/10013317478

The Economics, Technology and Neuroscience of Human Capability Formation

Heckman, James J. - 2015

This paper begins the synthesis of two currently unrelated literatures: the human capital approach to health economics and the economics of cognitive and noncognitive skill formation. A lifecycle investment framework is the foundation for understanding the origins of human inequality and for...

Persistent link: https://www.econbiz.de/10014049108

Temporary Shocks and Offshoring : The Role of External Economies and Firm Heterogeneity

Mitra, Devashish; Jha, Priyaranjan - 2007

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...

Persistent link: https://www.econbiz.de/10014049472

Diagnostic Tests of Cross Section Independence for Nonlinear Panel Data Models

Hsiao, Cheng; Pesaran, M. Hashem; Pick, Andreas - 2014

In this paper we discuss tests for residual cross section dependence in nonlinear panel data models. The tests are based on average pair-wise residual correlation coefficients. In nonlinear models, the definition of the residual is ambiguous and we consider two approaches: deviations of the...

Persistent link: https://www.econbiz.de/10014051110

A Positive Analysis of Targeted Employment Protection Legislation

Dolado, Juan J.; Jansen, Marcel; Jimeno, Juan F. - 2007

In many countries, Employment Protection Legislation (EPL) establishes less strict dismissal procedures for specific groups of workers. This paper builds a simple matching model with heterogeneous workers in order to analyze this feature of EPL. We use the model to analyze the effects of reforms...

Persistent link: https://www.econbiz.de/10014051630