Showing 1 - 10 of 46
Hedge fund managers are compensated via management fees on the assets under management (AUM) and incentive fees indexed … only paid via management fees, the manager optimally chooses time-invariant leverage to balance the size of allocation to … via both management and incentive fees, we show that (i) the high-powered incentive fees encourage excessive risk taking …
Persistent link: https://www.econbiz.de/10013128908
We propose a model where voters experience an emotional cost when they observe a firm that has displayed insufficient concern for other people's welfare (altruism) in the process of making high profits. Even with few truly altruistic firms, an equilibrium may emerge where all firms pretend to be...
Persistent link: https://www.econbiz.de/10013151652
In a model of industry standard setting with private information about firms' intellectual property, we analyze (a) firms' incentives to contribute to the development and improvement of a standard, and (b) firms' decision to disclose the existence of relevant intellectual property to other...
Persistent link: https://www.econbiz.de/10013066245
We study the determinants of the dynamics of firm lobbying behavior using a panel data set covering 1998-2006. Our data exhibit three striking facts: (i) few firms lobby, (ii) lobbying status is strongly associated with firm size, and (iii) lobbying status is highly persistent over time....
Persistent link: https://www.econbiz.de/10013067182
Using a model with upfront sunk costs, heterogeneous firms, and endogenous exchange rates, this paper demonstrates theoretically that volatility in fundamental variables such as the nominal interest rate that drive exchange rate volatility can simultaneously impact the entry behavior of...
Persistent link: https://www.econbiz.de/10012773155
We present a general equilibrium model of the decisions of firms to innovate and to engage in international trade. We use the model to analyze the impact of a reduction in international trade costs on firms' process and product innovative activity. We first show analytically that if all firms...
Persistent link: https://www.econbiz.de/10012750342
greater inequality. To investigate this we construct a dynamic model of intergenerational education acquisition, fertility … fertility and education, a decreasing marginal effect of parental education on children's years of education, and wages that are …
Persistent link: https://www.econbiz.de/10013220393
This paper develops a theoretical model that relates changes in educational inequality to the combined effects of innovations that have increased the relative demand for more educated labor and innovations that have increased ability premiums. Under the assumption that in the long run individual...
Persistent link: https://www.econbiz.de/10013224925
use easily observable characteristics such as years of education to 'statistically discriminate' among workers. The pure … credential value of education will depend on how quickly firms learn. To obtain information on employer learning, we work with a … education. The time path of the coefficient on the unobservable productivity variable provides information about the rate at …
Persistent link: https://www.econbiz.de/10013228624
This paper presents a survey and interpretation of recent research on the return to education. The empirical findings … in a series of current papers suggest that the causal effect of education on earnings is understated by standard …
Persistent link: https://www.econbiz.de/10013239940