Monopsony in motion Manning, Alan; Manning, Alan
2003., 20131203, 2013, 2003, 2003-01-01, 20030101
eBook
What happens if an employer cuts wages by one cent? Much of labor economics is built on the assumption that all the workers will quit immediately. Here, Alan Manning mounts a systematic challenge to ...the standard model of perfect competition.Monopsony in Motionstands apart by analyzing labor markets from the real-world perspective that employers have significant market (or monopsony) power over their workers. Arguing that this power derives from frictions in the labor market that make it time-consuming and costly for workers to change jobs, Manning re-examines much of labor economics based on this alternative and equally plausible assumption.
The book addresses the theoretical implications of monopsony and presents a wealth of empirical evidence. Our understanding of the distribution of wages, unemployment, and human capital can all be improved by recognizing that employers have some monopsony power over their workers. Also considered are policy issues including the minimum wage, equal pay legislation, and caps on working hours. In a monopsonistic labor market, concludes Manning, the "free" market can no longer be sustained as an ideal and labor economists need to be more open-minded in their evaluation of labor market policies.Monopsony in Motionwill represent for some a new fundamental text in the advanced study of labor economics, and for others, an invaluable alternative perspective that henceforth must be taken into account in any serious consideration of the subject.
Investor Protection and Corporate Governance analyzes the impact of corporate governance on firm performance and valuation. Using unique datasets gathered at the firm-level - the first such data in ...the region - and results from a homogeneous corporate governance questionnaire, the book examines corporate governance characteristics, ownership structures, dividend policies, and performance measures. The book's analysis reveals the very high levels of ownership and voting rights concentrations and monolithic governance structures in the largest samples of Latin American companies up to now, and new data emphasize the importance of specific characteristics of the investor protection regimes in several Latin American countries. By and large, those firms with better governance measures across several dimensions are granted higher valuations and thus lower cost of capital.
This study empirically analyzes the determinants of bond market development in a cross section of 23 sub-Saharan African (SSA) countries between 1990 and 2008. It considers the stage of development ...and the size of the bond market, as well as the historical, structural, institutional and macroeconomic factors driving bond market development in SSA. The study finds that the savings constraint is a key impediment to domestic bond markets development as well as financial market deepening, as it results in a low level of financial intermediation by the banks. Overall, the results show that a confluence of factors matters for the development of domestic bond markets in SSA; these include structure of the economy, investment profile, law and order, size of the banking sector, the level of economic development, and various macroeconomic factors. Policy implications include increased efforts to strengthen the investment environment and the need for a regional approach to bond market development.
We examine how fragmentation is affecting market quality in US equity markets. We use newly available trade reporting facilities (TRFs) data to measure fragmentation, and we use a variety of ...empirical approaches to compare execution quality and efficiency of stocks with more and less fragmented trading. We find that fragmentation affects all stocks; more fragmented stocks have lower transactions costs and faster execution speeds; and fragmentation is associated with higher short-term volatility but greater market efficiency, in that prices are closer to being a random walk. Our results that fragmentation does not appear to harm market quality are consistent with US markets being a single virtual market with multiple points of entry.
Why are elite jewelers reluctant to sell turquoise, despite strong demand? Why did leading investment bankers shun junk bonds for years, despite potential profits?Status Signalsis the first major ...sociological examination of how concerns about status affect market competition. Starting from the basic premise that status pervades the ties producers form in the marketplace, Joel Podolny shows how anxieties about status influence whom a producer does (or does not) accept as a partner, the price a producer can charge, the ease with which a producer enters a market, how the producer's inventions are received, and, ultimately, the market segments the producer can (and should) enter. To achieve desired status, firms must offer more than strong past performance and product quality--they must also send out and manage social and cultural signals.
Through detailed analyses of market competition across a broad array of industries--including investment banking, wine, semiconductors, shipping, and venture capital--Podolny demonstrates the pervasive impact of status. Along the way, he shows how corporate strategists, tempted by the profits of a market that would negatively affect their status, consider not only whether to enter the market but also whether they can alter the public's perception of the market. Podolny also examines the different ways in which a firm can have status. Wal-Mart, for example, has low status among the rich as a place to shop, but high status among the rich as a place to invest.
Status Signalsprovides a systematic understanding of market dynamics that have--until now--not been fully appreciated.
Identifying and preventing the cross-market risk contagion is very important for the market stability. This paper uses a MODWT-Vine quantile regression method to study the dynamic dependence and risk ...contagion effects among the international oil market, the Chinese commodity market and the Chinese stock market under multiple time scales, thus bringing in more specific information by considering the influence of covariates. The empirical results show that for the original time scale, the positive correlation between oil and stock decreases with the impact of the Chinese commodity market. The spread of the risk from the international oil market to the Chinese commodity market is relatively stronger than that to the Chinese stock market when the influence of covariates is controlled. The Chinese commodity market shares the risk contagion of the international oil market to the Chinese stock market to a certain degree. Volatility spillovers within the Chinese market are stronger than oil market spillovers to the Chinese domestic market. Besides, the risk contagion is different on different investment levels, for instance, the risk in the Chinese stock market of the medium-term investment time scale of 2–32 days is more contagious than that of the short-term time scale of 1–2 days. Finally, the asymmetry of risk contagion across the discussed markets of oil, stock and commodity reveals the specific and important information about the sensitivity of the risk contagion.
•The risk contagion of oil spread to the Chinese commodity is relatively stronger than that to the Chinese stock.•The Chinese commodity shares the risk contagion of the international oil to the Chinese stock to a certain degree.•Volatility spillovers within the Chinese market are stronger than oil market spillovers to the Chinese domestic market.•The asymmetry of risk contagion across the markets reveals the important information about the sensitivity of the risk contagion.
The purpose of this paper is to compare the European Union (EU) and United States (U.S.) securities regulations. In November 2007, the market in financial instruments directive 2004/39/EC (MiFID) ...came into force in the EU, and brought about deep changes in the market infrastructure. The same year regulations National Market System (NMS) in the U.S. was fully enacted and reformed equities markets. This study compares MiFID with the corresponding U.S. regulations, and primarily focuses on the regulatory and supervisory framework, trading venues, and the provision of investment services. Implementation of the rules enforcement and right to redress are beyond the scope of this paper. Likewise, the paper does not intend to judge the effectiveness of the two regulatory systems.
The world price of liquidity risk Lee, Kuan-Hui
Journal of financial economics,
2011, 2011-1-00, 20110101, Volume:
99, Issue:
1
Journal Article
Peer reviewed
This paper empirically tests the liquidity-adjusted capital asset pricing model of
Acharya and Pedersen (2005) on a global level. Consistent with the model, I find evidence that liquidity risks are ...priced independently of market risk in international financial markets. That is, a security’s required rate of return depends on the covariance of its own liquidity with aggregate local market liquidity, as well as the covariance of its own liquidity with local and global market returns. I also show that the US market is an important driving force of global liquidity risk. Furthermore, I find that the pricing of liquidity risk varies across countries according to geographic, economic, and political environments. The findings show that the systematic dimension of liquidity provides implications for international portfolio diversification.
Globalization is widely believed to have restricted the freedom of policy makers - many fear that the forces of a global economy prevent different political parties from making substantially ...distinctive policy choices. InPartisanship, Globalization, and Canadian Labour Market Policy, Rodney Haddow and Thomas Klassen explore this contentious issue by comparing labour market policy in Canada's most populous provinces, Ontario, Quebec, British Columbia, and Alberta, between 1990 and 2003.
Using the most up-to-date theoretical approaches available, Haddow and Klassen examine industrial relations, workers' compensation, occupational health, employment standards, training, and social assistance, measuring the impact of partisanship and globalization on policy-making in these areas. They situate Canada in relation to recent international scholarship on the comparative political economy of developed democracies, and explore the role that institutions play in conditioning labour market policy.
Partisanship, Globalization, and Canadian Labour Market Policywill not only be of interest to experts working in the field of labour market policy, but also to students and teachers of comparative political economy, partisanship, and governance in Canada.
