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The paper investigates whether liquidity constraints affect firm size and growth dynamics using a large longitudinal sample of Italian manufacturing firms. We run standard panel-data Gibrat regressions, suitably expanded to take into account liquidity constraints (proxied by cash flow scaled by...
Persistent link: https://www.econbiz.de/10010328431
This paper investigates how competition and firm size affect the relationship between market uncertainty and R …&D investment. We use an intuitively appealing measure of firm-specific uncertainty along with panel data to show that firms invest …&D investment is smaller in concentrated markets – those where market power is higher and strategic rivalry is more intense. Further …
Persistent link: https://www.econbiz.de/10010297999
Persistent link: https://www.econbiz.de/10011696589
recognizing that firms make substantial investment in intangible assets such as R&D, design, advertising etc. These investments … are not classified as investment in the National Accounts, where only tangible assets are defined as investment. This … paper provides estimates of investment in intangible assets and uses the growth accounting framework to analyze the Swedish …
Persistent link: https://www.econbiz.de/10010320348
appears unaffected: investment rates are flat, and productivity has slowed down. We investigate whether measurement issues … as intermediate consumption. Thus they do not count as either GDP or investment. We ask how treating such spending as … investment affects some key macro variables, namely, market sector gross value added (MGVA), business investment, capital and …
Persistent link: https://www.econbiz.de/10010284188
's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm's value due to profit sharing, linking this reduction to the …
Persistent link: https://www.econbiz.de/10011325118
We study the implications of product market competition and investment for price setting, wage bargaining and thereby … market competition will reduce equilibrium unemployment, whereas the effect of increased capital intensity is more complex …
Persistent link: https://www.econbiz.de/10010261822
encroacher's valuation of the asset is increasing in the asset owner's investment. Due to incomplete property rights, the … encroacher and asset owner engage in a contest over the control of the asset after investment has taken place. A standard result … is that the asset owner will underinvest in the asset relative to the first-best level of investment when property rights …
Persistent link: https://www.econbiz.de/10010265975
The role of product market reforms in achieving the objective of higher employment and growth has recently received much attention amongst academics. The aim of this paper is to analyse some of the channels through which cross-market effects come about and to assess their policy relevance. The...
Persistent link: https://www.econbiz.de/10010271923
analysis to investment decisions of strategic firms that anticipate competition on many consecutive spot markets with … fluctuating (and possibly uncertain) demand. We study how the degree of spot market competition affects investment incentives and … analysis of investment incentives is still missing. Existing models, as the peak-load-pricing approach, analyze welfare optimal …
Persistent link: https://www.econbiz.de/10010427559