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Does the Profit Motive Make Jack Nimble? Ownership Form and the Evolution of the U.S. Hospital Industry

Chakravarty, Sujoy - 2005

We examine the evolving structure of the U.S. hospital industry since 1970, focusing on how ownership form influences entry and exit behavior. We develop theoretical predictions based on the model of Lakdawalla and Philipson, in which for-profit and not-for-profit hospitals differ regarding...

Persistent link: https://www.econbiz.de/10012466967

Is There a Diversification Discount in Financial Conglomerates?

Laeven, Luc - 2005

influences their market valuations. We find that there is a diversification discount: The market …not sufficiently large to produce a diversification premium …

Persistent link: https://www.econbiz.de/10012467179

Does Diversification Destroy Value? Evidence From Industry Shocks

Lamont, Owen - 2000

Does corporate diversification reduce shareholder value? Since firms endogenously choose to diversify, exogenous … variation in diversification is necessary in order to draw inferences about the causal effect. We examine changes in the within … investment, are negatively related to firm value. Thus diversification destroys value, consistent with the inefficient internal …

Persistent link: https://www.econbiz.de/10012470947

The Cost of Diversity : The Diversification Discount and Inefficient Investment

Rajan, Raghuram - 1998

In a simple model of capital budgeting in a diversified firm where headquarters has limited power, we show that funds are allocated towards the most inefficient divisions. The distortion is greater the more diverse are the investment opportunities of the firm's divisions. We test these...

Persistent link: https://www.econbiz.de/10012472450

Do Nontraded Goods Explain the Home Bias Puzzle?

Pesenti, Paolo - 1996

domestic shares under full diversification. When stock-market data are directly used, the predicted coefficient of home bias …

Persistent link: https://www.econbiz.de/10012473049

How do Incumbents Respond to the Threat of Entry? Evidence from the Major Airlines

Goolsbee, Austan - 2005

We examine how incumbents respond to the threat of entry by competitors (as distinct from how they respond to actual entry). We look specifically at passenger airlines, using the evolution of Southwest Airlines' route network to identify particular routes where the probability of future entry...

Persistent link: https://www.econbiz.de/10012467615

"Success Taxes," Entrepreneurial Entry, and Innovation

Gentry, William M. - 2004

Interest in the role of entrepreneurial entry in innovation raises the question of the extent to which tax policy encourages or discourages entry. We find that, while the level of the marginal tax rate has a negative effect in entrepreneurial entry, the progressivity of the tax also discourages...

Persistent link: https://www.econbiz.de/10012468142

Entry Deterrence in Hospital Procedure Markets : A Simple Model of Learning-By-Doing

Dafny, Leemore S. - 2003

This paper examines the strategic behavior of hospitals in one of their primary output markets: inpatient surgical procedures. High levels of learning-by-doing in surgical fields may act as a barrier to entry. I investigate whether incumbent hospitals facing prospective entry in a procedure...

Persistent link: https://www.econbiz.de/10012468826

Identification and Estimation of Dynamic Games

Pesendorfer, Martin - 2003

estimation method. Every period firms simultaneously select an action from a finite set. We characterize the set of Markov … conditions. We propose a simple estimation procedure which follows the steps in the identification argument. The estimator is …

Persistent link: https://www.econbiz.de/10012468972

The Economics of "Radiator Springs : " Industry Dynamics, Sunk Costs, and Spatial Demand Shifts

Campbell, Jeffrey R. - 2016

Interstate Highway openings were permanent, anticipated demand shocks that increased gasoline demand and sometimes shifted it spatially. We investigate supply responses to these demand shocks, using county-level observations of service station counts and employment and data on highway openings'...

Persistent link: https://www.econbiz.de/10012456386