countries, regions and cities that provide the best business environment for their specific needs. In our study we focus on the … difference in stochastic costs of location across regions. A comparative static analysis shows that capital allocation depends … to the expected utility approach. The impact of changes in distribution parameters, such as the expected costs of …

Optimal layoff rules in closed form are derived for all workers in a firm that downsizes under uncertainty and faces … heterogeneous firing costs. The theoretical model predicts that the firm displaces workers with low firing costs, low expected … aircraft building company that went bankrupt in 1996 shows that workers with high uncertainty associated with higher than …