By providing liquidity to depositors and credit-line borrowers, bankscanbe exposed to double-runs on assets and liabilities. For identification, we exploit the 2007 freeze of the European interbank ...market and the Italian Credit Register. After the shock, there are sizeable, aggregate double-runs. In the cross-section,credit-line drawdowns are not larger for banksmore exposed tothe interbank market;however, they are larger when we condition on the same firms with multiple credit lines. Weshow that, ex-ante, more exposed banks actively manage their liquidity risk by grantingfewer credit lines to firms that run moreduringcrises.
Effects of innovation types on firm performance Gunday, Gurhan; Ulusoy, Gunduz; Kilic, Kemal ...
International journal of production economics,
10/2011, Letnik:
133, Številka:
2
Journal Article
Recenzirano
Innovation is broadly seen as an essential component of competitiveness, embedded in the organizational structures, processes, products and services within a firm. The objective of this paper is to ...explore the effects of the organizational, process, product and marketing innovations on the different aspects of firm performance, including innovative, production, market and financial performances, based on an empirical study covering 184 manufacturing firms in Turkey. A theoretical framework is empirically tested identifying the relationships amid innovations and firm performance through an integrated innovation-performance analysis. The results reveal the positive effects of innovations on firm performance in manufacturing industries.
This paper studies the formation of math and verbal skills during compulsory education and their impact on educational attainment. Using longitudinal data that follow students in England from ...elementary school to university, we find that the production functions of math and verbal skills are inherently different, where cross effects are present only in the production of math skills. Results on long-term educational outcomes indicate that verbal skills play a substantially greater role in explaining university enrollment than math skills. This finding, combined with the large female advantage in verbal skills, has key implications for gender gaps in college enrollment.
We find evidence of significant racial disparities in a new type of credit market known as peer-to-peer lending. Loan listings with blacks in the attached picture are 25 to 35 percent less likely to ...receive funding than those of whites with similar credit profiles. Despite the higher average interest rates charged to blacks, lenders making such loans earn a lower net return compared to loans made to whites with similar credit profiles because blacks have higher relative default rates. These results provide insight into whether the discrimination we find is taste-based or statistical.
We exploit exogenous variation in legal status following the January 2007 European Union enlargement to estimate its effect on immigrant crime. We difference out unobserved time-varying factors by ...(i) comparing recidivism rates of immigrants from the "new" and "candidate" member countries; and (ii) using arrest data on foreign detainees released upon a mass clemency that occurred in Italy in August 2006. The timing of the two events allows us to setup a difference-in-differences strategy. Legal status leads to a 50 percent reduction in recidivism, and explains one-half to two-thirds of the observed differences in crime rates between legal and illegal immigrants.
The Collective Clemency Bill passed by the Italian Parliament in July 2006 represents a natural experiment to analyze the behavioral response of individuals to an exogenous manipulation of prison ...sentences. On the basis of a unique data set on the postrelease behavior of former inmates, we find that 1 month less time served in prison commuted into 1 month more in expected sentence for future crimes reduces the probability of recidivism by 0.16 percentage points. From this result we estimate an elasticity of average recidivism with respect to the expected punishment equal to −0.74 for a 7‐month period.
Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public policies often pair competition with easy access to comparative information. The ...implicit assumption is that comparison friction—the wedge between the availability of comparative information and consumers' use of it—is inconsequential because when information is readily available, consumers will access this information and make effective choices. We examine the extent of comparison friction in the market for Medicare Part D prescription drug plans in the United States. In a randomized field experiment, an intervention group received a letter with personalized cost information. That information was readily available for free and widely advertised. However, this additional step—providing the information rather than having consumers actively access it—had an impact. Plan switching was 28% in the intervention group, versus 17% in the comparison group, and the intervention caused an average decline in predicted consumer cost of about $100 a year among letter recipients—roughly 5% of the cost in the comparison group. Our results suggest that comparison friction can be large even when the cost of acquiring information is small and may be relevant for a wide range of public policies that incorporate consumer choice.
Self‐reported life satisfaction is highly heterogeneous across similar countries, a phenomenon that may be explained by the different scales and benchmarks that people use to evaluate themselves. ...This study uses cross‐sectional data gathered from older populations in ten European countries to compare estimates from a model that assumes reporting styles are constant across respondents against estimates from a model in which anchoring vignettes help correct for individual‐specific scale biases. Variations in response scales explain much of the difference in the raw data. Moreover, the cross‐country ranking in life satisfaction depends significantly on scale biases.
The southwestern half of a ∼500 km long seismic gap in the central Kuril Island arc subduction zone experienced two great earthquakes with extensive preshock and aftershock sequences in late 2006 to ...early 2007. The nature of seismic coupling in the gap had been uncertain due to the limited historical record of prior large events and the presence of distinctive upper plate, trench and outer rise structures relative to adjacent regions along the arc that have experienced repeated great interplate earthquakes in the last few centuries. The intraplate region seaward of the seismic gap had several shallow compressional events during the preceding decades (notably an MS 7.2 event on 16 March 1963), leading to speculation that the interplate fault was seismically coupled. This issue was partly resolved by failure of the shallow portion of the interplate megathrust in an MW = 8.3 thrust event on 15 November 2006. This event ruptured ∼250 km along the seismic gap, just northeast of the great 1963 Kuril Island (Mw = 8.5) earthquake rupture zone. Within minutes of the thrust event, intense earthquake activity commenced beneath the outer wall of the trench seaward of the interplate rupture, with the larger events having normal‐faulting mechanisms. An unusual double band of interplate and intraplate aftershocks developed. On 13 January 2007, an MW = 8.1 extensional earthquake ruptured within the Pacific plate beneath the seaward edge of the Kuril trench. This event is the third largest normal‐faulting earthquake seaward of a subduction zone on record, and its rupture zone extended to at least 33 km depth and paralleled most of the length of the 2006 rupture. The 13 January 2007 event produced stronger shaking in Japan than the larger thrust event, as a consequence of higher short‐period energy radiation from the source. The great event aftershock sequences were dominated by the expected faulting geometries; thrust faulting for the 2006 rupture zone, and normal faulting for the 2007 rupture zone. A large intraplate compressional event occurred on 15 January 2009 (Mw = 7.4) near 45 km depth, below the rupture zone of the 2007 event and in the vicinity of the 16 March 1963 compressional event. The fault geometry, rupture process and slip distributions of the two great events are estimated using very broadband teleseismic body and surface wave observations. The occurrence of the thrust event in the shallowest portion of the interplate fault in a region with a paucity of large thrust events at greater depths suggests that the event removed most of the slip deficit on this portion of the interplate fault. This great earthquake doublet demonstrates the heightened seismic hazard posed by induced intraplate faulting following large interplate thrust events. Future seismic failure of the remainder of the seismic gap appears viable, with the northeastern region that has also experienced compressional activity seaward of the megathrust warranting particular attention.
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