Narrow search
Showing 1 - 10 of 488
Cover Image
Project Development with Delegated Bargaining : The Role of Elevated Hurdle Rates
Barry, John W.; Carlin, Bruce Ian; Crane, Alan D.; … - National Bureau of Economic Research - 2024
During project development, costs are endogenously determined through delegated bargaining with counterparties. In surveys, nearly 80% of CFOs report using an elevated hurdle rate, the implications of which we explore in a delegated bargaining model. We show that elevated hurdle rates can convey...
Persistent link: https://www.econbiz.de/10014512137
Cover Image
What Do Shareholders Want? Consumer Welfare and the Objective of the Firm
Ericson, Keith M. Marzilli - National Bureau of Economic Research - 2024
Shareholders want a firm's objective function to place some weight on consumer welfare, motivated by both self-interested and altruistic motivations. Firms have a unique technology for improving consumer welfare: lowering inefficient price markups, which increases consumer welfare more than it...
Persistent link: https://www.econbiz.de/10014468264
Cover Image
Research and/or Development? Financial Frictions and Innovation Investment
Mezzanotti, Filippo; Simcoe, Timothy S. - National Bureau of Economic Research - 2023
Abstract U.S. firms have reduced their investment in scientific research ("R") compared to product development ("D …"), raising questions about the returns to each type of investment, and about the reasons for this shift. We use Census data that … cost. Companies with greater demand for refinancing during the 2008 financial crisis made larger cuts to R&D investment …
Persistent link: https://www.econbiz.de/10014337755
Cover Image
Professor Zipf goes to Wall Street
Malevergne, Yannick - 2009
The heavy-tailed distribution of firm sizes first discovered by Zipf (1949) is one of the best established empirical facts in economics. We show that it has strong implications for asset pricing. Due to the concentration of the market portfolio when the distribution of the capitalization of...
Persistent link: https://www.econbiz.de/10012463355
Cover Image
The Financialization of Commodity Markets
Cheng, Ing-Haw - 2013
The large inflow of investment capital to commodity futures markets in the last decade has generated a heated debate … about whether financialization distorts commodity prices. Rather than focusing on the opposing views concerning whether … investment flows either did or did not cause a price bubble, we critically review academic studies through the perspective of how …
Persistent link: https://www.econbiz.de/10012459020
Cover Image
The Great Leveraging
Taylor, Alan M. - 2012
What can history tell us about the relationship between the banking system, financial crises, the global economy, and economic performance? Evidence shows that in the advanced economies we live in a world that is more financialized than ever before as measured by importance of credit in the...
Persistent link: https://www.econbiz.de/10012460371
Cover Image
Inflation is Conflict
Lorenzoni, Guido; Werning, Iván - National Bureau of Economic Research - 2023
This paper isolates the role of conflict or disagreement on inflation in two ways. In the first part of the paper, we present a stylized model, kept purposefully away from traditional macro models. Inflation arises despite the complete absence of money, credit, interest rates, production, and...
Persistent link: https://www.econbiz.de/10014250117
Cover Image
Supply Chain Constraints and Inflation
Comin, Diego; Johnson, Robert C.; Jones, Callum - National Bureau of Economic Research - 2023
We develop a multisector, open economy, New Keynesian framework to evaluate how potentially binding capacity constraints, and shocks to them, shape inflation. We show that binding constraints for domestic and foreign producers shift domestic and import price Phillips Curves up, similar to...
Persistent link: https://www.econbiz.de/10014250196
Cover Image
It's Baaack : The Surge in Inflation in the 2020s and the Return of the Non-Linear Phillips Curve
Benigno, Pierpaolo; Eggertsson, Gauti B. - National Bureau of Economic Research - 2023
This paper proposes a non-linear New Keynesian Phillips curve (Inv-L NK Phillips Curve) to explain the surge of inflation in the 2020s. Economic slack is measured as firms' job vacancies over the number of unemployed workers. After showing empirical evidence of statistically significant...
Persistent link: https://www.econbiz.de/10014250214
Cover Image
Unconventional Monetary Policy According to HANK
Sims, Eric R.; Wu, Jing Cynthia; Zhang, Ji - National Bureau of Economic Research - 2022
This paper studies the implications of household heterogeneity for the effectiveness of quantitative easing (QE). We consider a heterogeneous agent New Keynesian (HANK) model with uninsurable household income risk. Financial intermediaries are subject to an endogenous leverage constraint that...
Persistent link: https://www.econbiz.de/10013361984