We study optimal subsidies for renewable energy (RE) generation to internalize external benefits from intertemporal learning-by-doing spillovers, taking into account increasing marginal costs at the industry level due to limited availability of sites suitable for RE. We find that the optimal RE...

I analyse firms organisational choices when they face uncertainty about institutional conditions in foreign locations with heterogeneous final good producers and incomplete contracts. As firms learn about the conditions abroad, the increasing offshoring activity increases competition in the...

Communism in East Germany sought to dampen the effect of market forces on firm productivity for nearly 40 years. How did East German firms respond to the free market after being thrust into it in 1990? We use a formal learning model and German business survey data to analyze the lasting impact...

We consider dynamic price-setting by firms in the presence of rating systems and asymmetric information about product quality. The current price determines the set of purchasing consumers and thereby affects future ratings and continuation profits. We outline the effects of prices on consumers'...

Previous empirical evidence which evaluated the accuracy of management earnings or sales forecasts consistently revealed these forecasts to be on average significantly overoptimistic. However, all studies analyzed forecasts from public disclosures, which are an important signal to investors and...

This paper explores the role of immigrant employees for a firm's capability to absorb international knowledge. Using matched employer-employee data from Denmark for the years 1999 to 2009, we are able to show that non-Danish employees from technological advanced countries contribute...

This paper studies whether civic capital acts an effective restraint against opportunistic behavior in transactions, looking at the degree of outsourcing to external suppliers of service provision in Italian firms. Our results show that, on average, firms tend to outsource more services where...

We study the link between air accessibility (measured by non-stop flights offer) and the manufacturing export of the Italian regions in Europe using a panel of 12,000 half-yearly observations ranging from 1998 to 2010. The analysis shows that the supply of non-stop flights provided by...

This study addresses the relationship between product innovation and the demand and supply of trade credit. Theoretical as well as empirical studies are used to derive the hypothesis of a positive link between product innovation and trade credit demand and supply. Using a sample covering SMEs...

In this paper, we investigated the post-acquisition effects of privatization on hospital performance in Germany. Our findings show that there was a significant positive impact of privatization on hospital performance. Private for-profit privatizations, in particular, outperformed hospitals...