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Showing 9,661-9,680 of 13,860 items.

Does Money Illusion Matter?

By Ernst Fehr and Jean-Robert Tyran

American Economic Review, December 2001

This paper shows that a small amount of individual-level money illusion may cause considerable aggregate nominal inertia after a negative nominal shock. In addition, our results indicate that negative and positive nominal shocks have asymmetric effects be...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1239

Financing Investment

By Joao F. Gomes

American Economic Review, December 2001

We examine investment behavior when firms face costs in the access to external funds. We find that despite the existence of liquidity constraints, standard investment regressions predict that cash flow is an important determinant of investment only if one...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1263

Financial Markets and Firm Dynamics

By Thomas F. Cooley and Vincenzo Quadrini

American Economic Review, December 2001

Recent studies have shown that the dynamics of firms (growth, job reallocation, and exit) are negatively correlated with the initial size of the firm and its age. In this paper we analyze whether financial factors, in addition to technological differences...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1286

Competition in Loan Contracts

By Christine A. Parlour and Uday Rajan

American Economic Review, December 2001

We present a model of an unsecured loan market. Many lenders simultaneously offer loan contracts (a debt level and an interest rate) to a borrower. The borrower may accept more than one contract. Her payoff if she defaults increases in the total amount bo...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1311

Why Regulate Insider Trading? Evidence from the First Great Merger Wave (1897-1903)

By Ajeyo Banerjee and E. Woodrow Eckard

American Economic Review, December 2001

We use event-time methodology to study legal insider trading associated with mergers circa 1900. For mergers with "prospective" disclosures similar to today's, we find substantial value gains at announcement, implying participation by "outside" shareholde...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1329

Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding

By Rebecca Achee Thornton and Peter Thompson

American Economic Review, December 2001

A new data set facilitates study of learning spillovers in World War II shipbuilding. Our results contain two principal but contrasting themes. First, learning spillovers were a significant source of productivity growth, and may have contributed more than...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1350

The Colonial Origins of Comparative Development: An Empirical Investigation

By Daron Acemoglu, Simon Johnson, and James A. Robinson

American Economic Review, December 2001

We exploit differences in European mortality rates to estimate the effect of institutions on economic performance. Europeans adopted very different colonization policies in different colonies, with different associated institutions. In places where Europe...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1369

Ten Little Treasures of Game Theory and Ten Intuitive Contradictions

By Jacob K. Goeree and Charles A. Holt

American Economic Review, December 2001

This paper reports laboratory data for games that are played only once. These games span the standard categories: static and dynamic games with complete and incomplete information. For each game, the treasure is a treatment in which behavior conforms nice...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1402

An Account of Global Factor Trade

By Donald R. Davis and David E. Weinstein

American Economic Review, December 2001

A half century of empirical work attempting to predict the factor content of trade in goods has failed to bring theory and data into congruence. Our study shows how the Heckscher-Ohlin-Vanek theory, when modified to permit technical differences, a breakdo...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1423

Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products

By Gilles Duranton and Diego Puga

American Economic Review, December 2001

This paper develops microfoundations for the role that diversified cities play in fostering innovation. A simple model of process innovation is proposed, where firms learn about their ideal production process by making prototypes. We build around this a d...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1454

Conflicts and Common Interests in Committees

By Hao Li, Sherwin Rosen, and Wing Suen

American Economic Review, December 2001

Committees improve decisions by pooling members' independent information, but promote manipulation, obfuscation, and exaggeration of private information when members have conflicting preferences. Committee decision procedures transform continuous data int...

www.aeaweb.org/articles?id=10.1257/aer.91.5.1478