This paper examines the link between multinational enterprises and employment growth atthe plant-level. We investigate in detail the comparative response of multinationals anddomestic firms to an economic crisis, using the empirical setting of a well defined case ofeconomic slowdown in Chile as...

We discuss long-run growth in an economy which is subject toaggregate productivity shocks affecting all factors of production. Wedemonstrate that the presence of labor income risk unambiguously isan important determinant of long-run expected growth. The issue ofdynamic inefficiency of the...

There is a large body of evidence supporting the notion that a) those who grow up to be patient(forward-looking) do better in life compared to those who do not, and b) parents can inculcatethe virtue of delayed gratification in their children by taking the right sort of actions. We studya...

This paper extends the standard human capital model with real options. Real options influenceinvestment behavior when risky investments in human capital are irreversible and individualscan affect the timing of the investment. Option values make individuals more reluctant toinvest in human...

We estimate the effects of labor market entry conditions on wages for male individuals firstentering the Austrian labor market between 1978 and 2000. We find a large negative effect ofunfavorable entry conditions on starting wages as well as a sizeable negative long-run effect.Specifically, we...

This paper explores the effects of unemployment on the school enrolment decisions. A few studies that have taken up this issue in the past have produced results that are seemingly contradictory with each other. We build a model of the enrolment decision that is capable of explaining these...

This paper investigates how investors who face both equity risk and credit risk would optimally allocate their financial wealth in a dynamic continuous-time setup.

This paper solves the intertemporal investment problem of an investor holding a portfolio of default-free and defaultable bonds.

This paper investigates the impact of heterogeneous beliefs of professional investors on the currency options market. Using a unique data set with detailed information on the foreign-exchange forecasts of about 50 market participants over more than ten years, we construct an empirical proxy for...

In this paper we solve an intertemporal portfolio problem with correlation risk, using a new approach for the simultaneous modeling of stochastic correlation and volatility. The solutions of the model are in closed form and include an optimal portfolio demand for hedging correlation risk. We...