This paper studies the labour demand using a Q model in which labour and capital entail adjustment costs. The estimates are based on an unbalanced panel of Spanish firms over the period 1989-96. The corresponding Q variable for labour is significant in explaining hiring rates. Its estimated...

The paper analyzes investment behavior of industrial enterprises in the period immediately following price and foreign trade liberalization in the Czech Republic. It also focuses on the effect of "soft" macroeconomic environment on the microeconomic decisions. A dynamic investment function with...

We investigate the microeconomic effects of labor regulations that protect employment and are expected to increase rigidity in labor markets. We exploit a unique outlet-level dataset obtained from a multinational food chain operating 2,525 similar retail outlets in 43 countries outside the...

The extensive empirical macro- and micro-level evidence on the impact of job security provisions is largely inconclusive. We argue that the weak evidence is a consequence of the weak power of statistics used, which is suggested by a dynamic theory of plant-level labor demand that we develop....

We investigate the microeconomic effects of labor regulations that protect employment and are expected to increase rigidity in labor markets. We exploit a unique outlet-level dataset obtained from a multinational food chain operating about 2,840 retail outlets in 43 countries outside the United...

This dissertation explores the microeconomic and aggregate implications of an array of employmentadjustment frictions. Chapter 1 investigates the JOBS Bank, a unique employment adjustment cost that prevailed in the domestic automobile industry for nearly 20 years. The JOBS Bank required...

Farmland and capital are an important and rapidly expanding component of the agriculturaleconomy, and empirical evidence suggests that these assets are quasi-fixed in that adjustment costs are incurred when holdings are altered. Increased interest in the rate of return for investing in farmland...

This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S, firms fund a much larger proportion of their financing deficit with external equity when the cost of equity capital is low. The historical values of the cost of equity capital have...

Purchasing goods from distant locations introduces a significant lag between when a product is shipped and when it arrives. These transit lags are trade barriers for firms facing volatile demand, who must place orders before knowing the resolution of demand uncertainty. We provide a model in...

This paper examines the determinants of economic value and investment behavior of Spanish banks under the theory of investment for a multi-asset firm, focusing on three key issues: i) the distinction between immaterial and intangible assets and how each of them is related to the economic value...