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We estimate trend unemployment rates for Ohio, Pennsylvania, Kentucky, and West Virginia, states that span parts of the Fourth District of the Federal Reserve System. Our estimated unemployment rate trend for the District as a whole stood at 5.7 percent in 2020:Q1 compared to a 4.7 percent...
Persistent link: https://www.econbiz.de/10012828863
We analyze a general equilibrium model of firm dynamics to study the effects of shocks to productivity, labor wedge, and collateral constraint (credit shock) on firm exit. We find that only the credit shock increases firm exit. This result is robust to the magnitude of shocks and different model...
Persistent link: https://www.econbiz.de/10012832578
The global financial crisis has created a structural break in the global economy. Businesses thus need to reassess the strategies they have developed to operate in a highly integrated global economy. Initial reactions have often been defensive as companies downsize and call for government...
Persistent link: https://www.econbiz.de/10012718193
Using plant level panel data on Korean manufacturing during the 1990-98 period, this study tries to assess the role of entry and exit in enhancing aggregate productivity, both qualitatively and quantitatively. The main findings of this study are summarised as follows. First, plant entry and exit...
Persistent link: https://www.econbiz.de/10012445716
We analyze a general equilibrium model of firm dynamics to study the effects of shocks to productivity, labor wedge, and collateral constraint (credit shock) on firm exit. We find that only the credit shock increases firm exit. This result is robust to the magnitude of shocks and different model...
Persistent link: https://www.econbiz.de/10012238357
In Europe, accounting standards prevent larger expenditures on employer-sponsored training from being treated as investments. Using Sweden as example, we discuss two consequences for training. First, the timing: training will be conducted when income is large enough for training costs to be...
Persistent link: https://www.econbiz.de/10011571618
firms face fewer competitors and thus charge higher markups which damages productivity. I analyze this trade-off between … tractable DGE model of endogenous firm entry/exit and endogenous markups. …
Persistent link: https://www.econbiz.de/10011717059
In this paper, we show how the conflict between the shareholders (owners) and managers of firms in terms of profit rates generates dynamics between growth and distribution that results in a long-run variation in the capacity utilization rate. The model developed here generates oscillations in...
Persistent link: https://www.econbiz.de/10012039352
bias in measured TFP, but this subsides to upward bias from endogenous markups as firm entry adjusts. I analyze dynamics … measured TFP. Given market power, simulations show that measured TFP is 40% higher than technology in the short-run, due solely … to profits, and 20% higher in the long-run due solely to markups. During transition both effects contribute upward bias …
Persistent link: https://www.econbiz.de/10011925945
This study represents a first attempt to empirically analyze the role of firm heterogeneity in regional business cycle behaviour. Working with monthly Italy's firms data and estimating a random effects ordered probit model, we first document sizable asymmetries in Northern and Southern firms...
Persistent link: https://www.econbiz.de/10011522570