We investigate the extent to which financing constraints affect the innovation activities of over 120,000 mainly unlisted Chinese firms over the period 2000–2007. Based on a variety of specifications and estimation methods, we document that Chinese firms' innovation activities are constrained...

The objective of this paper is to quantify the net effect that the massive opening of edge or out-of-town superstores, which took place in Great Britain in the mid-eighties and early nineties, had on local employment. Our data set consists of the location and the opening dates of Tesco and...

The interpretation of the correlation between cash flow and investment is highly controversial. Some argue that it is caused by financial constraints, others by the correlation between cash flow and investment opportunities that are not properly measured by TobinÕs Q. This paper uses UK firmsÕ...

We construct a dynamic monopolistic competition model with heterogeneous firms to study the links between firms’ earnings volatility, the degree of financial constraints that they face, their survival probabilities, and their export market participation decisions. Our model predicts that more...

Why do some countries industrialize later than others? Recent literature suggests that the prime reason is low agricultural productivity. This paper argues that the initial level of human capital could also be a contributing factor. We construct a neoclassical growth model, which predicts that...

In this paper, we generalise Weil's (1993) model, which is based on hybrid non-expected utility preferences, by allowing for habit formation. We use this generalised model to derive an Euler equation, where current consumption changes depend on lagged changes and labour income risk. We then...

In this paper, the authors provide an empirical analysis of heterogeneity in firms' inventory behavior using a panel of U.K. manufacturing firms. They first investigate how the relative variance of production and sales differs across firms. The authors then use variants of the linear quadratic...