This paper presents empirical evidence on scale economies and overcapitalization in Japanese electric utilities. The authors employ the short-run equilibrium model in which the variable cost function treats capital stock as a quasi-fixed factor. They specify the variable cost function as a...

Using a new econometric model, this study provides evidence that contradicts previous assertions about the Japanese labour market. The interrelationship between employment and hours of labour is stressed in this analysis by explicitly dividing labour input into both employment and labour hours....

We tested for the presence of IT capital externalities, based on a translog cost function framework applied to 10 Japanese manufacturing industries for the years 1974 to 1993. This framework allows us to test whether investment in IT capital in other industries reduces costs in a given industry....

We tested for the presence of IT capital externalities, based on a translog cost function framework applied to 10 Japanese manufacturing industries for the years 1974 to 1993. This framework allows us to test whether investment in IT capital in other industries reduces costs in a given industry....

The purpose of this article is to investigate the relation of employment and IT capital. In particular, it examines whether employment increases or decreases as IT capital increases. The elasticity of substitution between IT capital and labour has drastically increased in the latter part of the...

Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...

We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...

This paper reports data from a laboratory experiment on two-period moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts...