The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and investment likely. On the other hand, the ability of firms to...

Most bank efficiency studies that use stochastic frontier analysis (SFA) employ each bank's own implicit input price when estimating efficient frontiers. But the theoretical foundation of most studies is a cost minimisation and/ or profit maximisation problem assuming perfect input markets. At...

The present paper investigates the neglected topic of budgeting rules for public bureaucracies performing governmental activities within predetermined budgets under rules governing expenditure levels and composition. We analyze the optimal budgeting scheme, if the bureaucracy has superior...

When calculating the cost of entering into a credit transaction the predominant stochastic component is the expected loss. Often in the credit business the one-year probability of default of the liable counterpart is the only reliable parameter. We use this probability to calculating the exact...

Der Produktrückruf ist als haftungsrechtliches Phänomen seit den 70er Jahren ständig bedeutsamer geworden. Der Grund dafür liegt im Wesentlichen in der zunehmenden Differenzierung der Fertigungsprozesse, also der fortschreitenden Arbeitsteilung im Produktionsprozeß und der damit...

Für die Prinzipal-Agenten-Theorie ist es ein weitgehend ungelöstes Rätsel, warum reale Arbeitsverträge sehr geringe monetäre Leistungsanreize spezifizieren. In dieser Arbeit wird auf der Grundlage des Prinzipal-Agenten-Ansatzes ein Modell entwickelt, dass sowohl Fixlohnverträge als auch...

This article analyses value changes of German stock market companies in response to movements of the US dollar. The approach followed in this work extends the standard means of measuring exchange rate exposure in several ways (e.g. by using multi-factor modelling instead of augmented CAPM,...

This paper is concerned with the question as to what extent population size and density affect the cost of providing public services at the subnational level. Empirical estimates of cost functions are obtained from an analysis of the expenditures of German states disaggregated into about 40...