make investments before matching in a competitive market. We introduce the notion of premune-ation values—the values to the …

This paper studies the role of capital investment in a search and matching model. I develop an endogenous job … separation matching model in which a firm's irreversible capital investment is endogenously determined. The incorporation of … capital investment provides an additional channel for firms to respond to productivity shocks, significantly magnifying labor …

investment behavior. The bilateral external benefits induce an investment multiplier effect. This multiplier effect depends in a … of investment and the signaling incentives induced by competition. …

properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … how it interacts with other important factors such as the costs of investment and the signaling incentives induced by …

properties of the equilibrium investment behavior. The bilateral external benefits induce an investment multiplier effect. This … how it interacts with other important factors such as the costs of investment and the signaling incentives induced by …

This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend … towards the first-best. -- Holdup Problem ; Matching Market ; Investments …

make investments before matching in a competitive market. We introduce the notion of premuneration values - the values to …