Abstract
We show theoretically and empirically that the managerial organization of multiestablishment firms is interdependent across establishments. To derive our result, we study the effect of ...geographic frictions on firm organization. In our model, we assume that a CEO’s time is a resource in limited supply, shared across headquarters and establishments. Geographic frictions increase the costs of accessing the CEO. Hiring middle managers at one establishment substitutes for CEO time, which is reallocated across all establishments. Consequently, geographic frictions between the headquarters and one establishment affect the organization of all establishments of a firm. Our model is consistent with novel facts about multiestablishment firm organization that we document using administrative data from Germany. We exploit the opening of high-speed railway routes to show that not only the establishments directly affected by faster travel times but also the other establishments of the firm adjust their organization. Our findings imply that local conditions propagate across space through firm organization.
This paper exploits county-level variation in exposure to news about labor markets impacted by fracking to show that access to information about employment opportunities affects migration. Exposure ...to newspaper articles about fracking increased migration to areas mentioned in the news by 2.4% on average, concentrated among young, unmarried, less educated men. Commuting also increased, sentiment of the news matters, and TV news has an impact. Google searches for “fracking” and names of states specifically mentioned spike after news broadcasts about fracking. Counties experiencing weak labor markets are the most responsive, suggesting that these areas see large benefits to information provision.
We estimate the returns to college using administrative data on both college enrollment and earnings. Exploiting that colleges dismiss low-performing students on the basis of exact GPA cutoffs, we ...use a regression discontinuity design to estimate the earnings impacts of college. Dismissal leads to a short-run increase in earnings and tuition savings, but the future fall in earnings is sufficiently large that 8 years after dismissal, persisting students have already recouped their upfront investment with an internal rate of return of 4.1%. We provide a variety of evidence that manipulation of the running variable does not drive our results.
Media Power Prat, Andrea
The Journal of political economy,
08/2018, Letnik:
126, Številka:
4
Journal Article
Recenzirano
This paper defines the power of a media organization as its ability to induce voters tomake electoral decisions they would not make if reporting were unbiased. It derives a robust upper bound to ...media power over a range of assumptions about the beliefs and attention patterns of voters. The paper then presents estimates of the power index for the United States and shows how these can inform merger analysis and other policy debates.
Tuition, Debt, and Human Capital Chakrabarti, Rajashri; Fos, Vyacheslav; Liberman, Andres ...
Review of financial studies/The Review of financial studies,
03/2023, Letnik:
36, Številka:
4
Journal Article
Recenzirano
Odprti dostop
Abstract
This paper investigates the effects of college tuition on student debt and human capital accumulation. We exploit data from a random sample of undergraduate students in the United States and ...implement a research design that instruments for realized tuition with relatively large changes to the advertised tuition of students who enrolled at the same school in different cohorts. We find that $5,000 in higher tuition causally reduces the probability of graduating with a graduate degree by 3.1 percentage points and increases student debt by $1,480. Higher tuition also leads to a decline in mortgage balances and an increase in credit card delinquencies.
Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
Land, Structure and Depreciation Francke, Marc K.; Minne, Alex M.
Real estate economics,
07/2017, Letnik:
45, Številka:
2
Journal Article
Recenzirano
We introduce a hedonic price model that enables us to disentangle the value of a property into the value of land and the value of structure. For given reconstruction costs, we are able to estimate ...the impact of physical deterioration, functional obsolescence and vintage effects on the structure and the impact of time on sale (and external obsolescence) on the land value simultaneously. Our findings show that maintenance has a substantial impact on the rate of physical deterioration. After 50 years of not or barely maintaining a home, a typical structure has lost around 43% of its value. In contrast, maintaining a home very well results in virtually no physical deterioration in the long run.
Between 2000 and 2012, the Portuguese economy grew less than the United States during the Great Depression and less than Japan during its lost decade. This paper asks why this happened, with a ...particular focus on the slump between 2000 and 2007. It describes the main facts of Portugal's recent economic history, evaluates some possible explanations for its dismal performance, and proposes a new hypothesis based on the misallocation of abundant capital flows from abroad. I put forward a model of credit frictions to show that if financial integration exceeds financial deepening, productivity will fall, generating a slump as relatively unproductive firms in the non-tradables sector expand at the expense of more productive tradables firms. This explanation can also potentially account for the similarities and the differences between Portugal on the one hand, and Ireland and Spain on the other, during this period, and for some features of the crash in Portugal after 2010.
This article investigates the potential trade‐off between the stimulus and environmental objectives in the context of the U.S. vehicle scrappage program. We develop and estimate a dynamic model of ...vehicle ownership and conduct a counterfactual analysis comparing the implemented policy with alternative designs. We find the cost of the implemented policy 25% higher in terms of induced sales and 64% higher in terms of induced spending than a policy design without the environmental objective. The findings serve as a caution for green stimulus programs to address both climate change and the economic crisis from the ongoing pandemic.
We show that armed conflict in Uganda affects social capital as measured by trust and associational membership. Relying on three rounds of nationally representative individual-level data bracketing a ...large number of violent events, we find that selfreported generalized trust and associational membership decreased during the conflict in districts in which violent events took place. But we also find evidence for a rapid recovery of social capital in the aftermath of violence. Results from a variety of identification strategies, including difference-in-differences and instrumental variable estimates, suggests that these relationships are causal.
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