Firms in socialist and transitional economies are often obliged to provide a social good in addition to a private good, which makes it difficult for a government to commit not to bail out the firm once it is in financial trouble. This creates a soft budget constraint syndrome which causes the...

Empirical work on price-cost margins often treats costs as exogenous. Allowing for endogenous costs when estimating price-cost margins is the topic of this paper. Methodologically, the endogenous cost model we propose leads to an additional equation that allows for the simultaneity in price...

This paper investigates the strategic value of the managerial incentive scheme in affecting firms' incentive in R&D investment and their product market activities. Firstly, we find that in Cournot-quantity competition, owners strategically assign a non-profit-maximization objective to their...

This paper investigates the strategic value of the managerial incentive scheme in affecting firms' incentive in R&D investment and their product market activities. Firstly, we find that in Cournot-quantity competition, owners strategically assign a non-profit-maximization objective to their...

Innovation ist in China zu einem Modewort geworden. Die chinesische Regierung ist bestrebt, das Land von einem reinen Produktionsstandort zu einem der führenden Innovationsstandorte zu entwickeln. Dabei sind bereits beachtliche Erfolge erzielt worden. China hat seine Aktivitäten in Forschung...

Firms in socialist and transitional economies are often obliged to provide a social good in addition to a private good, which makes it difficult for a government to commit not to bail out the firm once it is in financial trouble. This creates a soft budget constraint syndrome which causes the...