Similar Search Results

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

Frictions in a Competitive, Regulated Market : Evidence from Taxis

Fréchette, Guillaume R. - 2018

This paper presents a dynamic general equilibrium model of a taxi market. The model is estimated using data from New York City yellow cabs. Two salient features by which most taxi markets deviate from the efficient market ideal are, first, matching frictions created by the need for both market...

Persistent link: https://www.econbiz.de/10012480576

Entry Costs and the Macroeconomy

Gutiérrez Gallardo, Germán - 2019

We propose a model to identify the causes of rising profits and concentration, and declining entry and investment in the US economy. Our approach combines a rich structural DSGE model with cross-sectional identification from firm and industry data. Using asset prices, our model estimates the...

Persistent link: https://www.econbiz.de/10012479562

The Effects of Entry on Incumbent Innovation and Productivity

Aghion, Philippe - 2006

How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that there is heterogeneity across industries--incumbents in technologically advanced industries react positively to foreign firm entry, but not in laggard industries. To explain this...

Persistent link: https://www.econbiz.de/10012466642

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