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I show that individuals whose unemployment risk tends to increase more when local home prices fall optimally invest …
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concentrated in top firms. The model has three central ingredients: (1) Risk-neutral firms behave as if they were risk …-averse because of financial constraints (2) The tax rate of the return on cash is negatively related to firms' effective risk …, the theory suggests that multinational firms' effective risk-aversion was reduced and they had the incentive to increase …
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, as well as the degree of risk aversion. Since the consumption uncertainty associated with compensation generally exceeds …
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Courts typically base compensation for loss of income in personal injury cases on either mean or median work income. Yet, quantatively, mean and median incomes are typically very different. For example, in the US median income is 65 percent of mean income. In this paper we use economic theory to...
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Courts typically base compensation for loss of income in personal injury cases on either mean or median work income. Yet, quantatively, mean and median incomes are typically very different. For example, in the US median income is 65 percent of mean income. In this paper we use economic theory to...
Persistent link: https://www.econbiz.de/10012034365