Most firms deleverage from their historical peak market-leverage (ML) ratios to near-zero ML, while also markedly increasing cash balances to high levels. Among 4,476 nonfinancial firms with five or ...more years of post-peak data, median ML is 0.543 at the peak and 0.026 at the later trough, with a six-year median time from peak to trough and with debt repayment and earnings retention accounting for 93.7% of the median peak-to-trough decline in ML. The findings support theories in which firms deleverage to restore ample financial flexibility and are difficult to reconcile with most firms having materially positive leverage targets.
The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on the development of innovative products is only partially understood. We ...hypothesize that as competition increases, R&D-intensive firms will: i) increase R&D investment relative to existing assets in place; ii) carry more cash; and iii) maintain less net debt. Using the Hatch–Waxman Act as an exogenous shock to competition, we provide causal evidence supporting these hypotheses through a differences-in-differences analysis that exploits differences between the biopharma industry and other industries, and heterogeneity within the biopharma industry. We also explore how these changes affect innovative output.
The changing (dis-)utility of work Kaplan, Greg; Schulhofer-Wohl, Sam
The Journal of economic perspectives,
2018, Letnik:
32, Številka:
3
Journal Article
Recenzirano
Odprti dostop
We study how changes in the distribution of occupations have affected the aggregate non-pecuniary costs and benefits of working. The physical toll of work is less now than in 1950, with workers ...shifting away from occupations in which people report experiencing tiredness and pain. The emotional consequences of the changing occupation distribution vary substantially across demographic groups. Work has become happier and more meaningful for women, but more stressful and less meaningful for men. These changes appear to be concentrated at lower education levels.
We document that the first and third cross-sectional moments of the distribution of GDP growth rates made by professional forecasters can predict equity excess returns, a finding that is robust to ...controlling for a large set of well-established predictive factors. We show that introducing time-varying skewness in the distribution of expected growth prospects in an otherwise standard endowment economy can substantially increase the model-implied equity Sharpe ratios, and produce a large amount of fluctuation in equity risk premiums.
Local stock markets adjust sluggishly to changes in local inflation. When the local rate of inflation increases, local investors subsequently earn lower real returns on local stocks, but not on local ...bonds or foreign stocks, suggesting that local stock market investors use sticky long-run nominal discount rates that are too low when inflation increases because they are slow to update the inflation expectations in discount rates. Small amounts of stickiness in inflation expectations suffice to match the real stock return predictability induced by inflation in the data. We also consider other explanations, such as nominal cash flow extrapolation.
Almost fifty years ago, America's industrial cities-Detroit, Philadelphia, Cleveland, Baltimore, and others-began shedding people and jobs. Today they are littered with tens of thousands of abandoned ...houses, shuttered factories, and vacant lots. With population and housing losses continuing in the wake of the 2007 financial crisis, the future of neighborhoods in these places is precarious. How we will rebuild shrinking cities and what urban design vision will guide their future remain contentious and unknown.
InDesign After Decline, Brent D. Ryan reveals the fraught and intermittently successful efforts of architects, planners, and city officials to rebuild shrinking cities following mid-century urban renewal. With modern architecture in disrepute, federal funds scarce, and architects and planners disengaged, politicians and developers were left to pick up the pieces. In twin narratives, Ryan describes how America's two largest shrinking cities, Detroit and Philadelphia, faced the challenge of design after decline in dramatically different ways. While Detroit allowed developers to carve up the cityscape into suburban enclaves, Philadelphia brought back 1960s-style land condemnation for benevolent social purposes. Both Detroit and Philadelphia "succeeded" in rebuilding but at the cost of innovative urban design and planning.
Ryan proposes that the unprecedented crisis facing these cities today requires a revival of the visionary thinking found in the best modernist urban design, tempered with the lessons gained from post-1960s community planning. Depicting the ideal shrinking city as a shifting patchwork of open and settled areas, Ryan concludes that accepting the inevitable decline and abandonment of some neighborhoods, while rebuilding others as new neighborhoods with innovative design and planning, can reignite modernism's spirit of optimism and shape a brighter future for shrinking cities and their residents.
Fragile, gritty, and vital to an extraordinary degree, St. Petersburg is one of the world's most alluring cities-a place in which the past is at once ubiquitous and inescapably controversial. Yet ...outsiders are far more familiar with the city's pre-1917 and Second World War history than with its recent past.
In this beautifully illustrated and highly original book, Catriona Kelly shows how creative engagement with the past has always been fundamental to St. Petersburg's residents. Weaving together oral history, personal observation, literary and artistic texts, journalism, and archival materials, she traces the at times paradoxical feelings of anxiety and pride that were inspired by living in the city, both when it was socialist Leningrad, and now. Ranging from rubbish dumps to promenades, from the city's glamorous center to its grimy outskirts, this ambitious book offers a compelling and always unexpected panorama of an extraordinary and elusive place.
Since 1950, the South has undergone the most dramatic political transformation of any region in the country. The Solid (Democratic) South is now overwhelmingly Republican, and long-disenfranchised ...African Americans vote at levels comparable to those of whites. This book's theory of relative advantage provides a new perspective on this party system transformation. Specifically, this work advances the idea that local strategic dynamics, namely the organizational development of the Republican Party and the mobilization of the black electorate, were the centerpieces of political change in the region. Written more than six decades ago, V. O. Key’s seminal work on the region highlighted the fact that the politics of the South was permeated by the issue of race. The central finding of his work is that race was, and still is, the locus of political change in the South. This conclusion stands in stark contrast to recent scholarship that points to in-migration, economic growth, or religious factors as being more pivotal agents of change. Besides the direct contribution this work makes to the study of Southern politics, it also contains implications for our understanding of party system change (including realignments), racial politics, and the role that state and local political dynamics play with regard to national politics and policymaking.
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