The decisions of firms on investment and hiring play a crucial role in business cycle fluctuations. This paper explores their dynamic behavior in the presence of frictions. It does so within a unified framework, stressing their mutual dependence and placing the emphasis on their joint,...

In this paper, we present a simple model in which a unionized and non-unionized firm optimally make investment decisions given their labor productivity. By allowing workers' organizations to have positive effects on labor effort, we find that the classic hold-up problem does not necessarily...

Attitudes toward risk underlie virtually every important economic decision an individual makes. In this experimental study, I examine how introducing a time delay into the execution of an investment plan influences individuals' risk preferences. The field experiment proceeded in three stages: a...

We estimate the effects of a mandate allocating a third of corporate board seats to workers (shared governance). We study a reform in Germany that abruptly abolished this mandate for certain firms incorporated after August 1994 but locked it in for the older cohorts. In sharp contrast to the...

To improve their competitiveness the companies aim to increase the funds available to finance the necessary investments. In order to reduce wage costs company-specific deviations from industry-level wage contracts are concluded. Company-level pacts between the management and the works council...

This paper presents a novel method for estimating the likely welfare effects of competition reforms for both current and new consumers. Using household budget survey data for 2015/16 for Ethiopia and assuming a reform scenario that dilutes the market share of the state-owned monopoly to 45...

It has traditionally been argued that the development of telecommunications infrastructure is dependent on the quality of countries' political institutions. We estimate the effect of political institutions on the diffusion of three telecommunications services and find it to be much smaller in...

Business support policies designed to raise productivity and employment are commonworldwide, but rigorous micro-econometric evaluation of their causal effects is rare. Weexploit multiple changes in the area-specific eligibility criteria for a major program to supportmanufacturing jobs...

This paper documents the relationship between foreign ownership and firm survival forenterprises in Germany using unique tailor-made new representative data that mergeinformation from surveys performed by the Statistical Offices, from administrative datacollected by the Tax Authorities and from...

Do the short and medium term adjustment costs associated with trade liberalization influenceschooling and child labor decisions? We examine this question in the context of India's 1991tariff reforms. Overall, in the 1990s, rural India experienced a dramatic increase in schoolingand decline in...