I study empirically the market-wide importance of investors’ reluctance to realize losses by investigating IPO trading volume. In IPOs all initial investors have a common purchase price, and the ...disposition effect should thus be at its strongest. Turnover is significantly lower for negative initial return IPOs when the stock trades below the offer price, and increases significantly on the day the price surpasses the offer price for the first time. The increase in volume lasts for two weeks. On a daily level, attaining new maximum and minimum stock prices also produces strong increase in volume. These results suggest that reference price effects play a role in aggregate stock market activity.
This paper contrasts the effects of trade, inward FDI and technological development upon the demand for skilled and unskilled workers in the UK. By focussing on industry level data panel data on ...smaller firms, the paper also contrasts these effects with those generated by large scale domestic investment. The analysis is placed within the broader context of shifts in British industrial policy, which has seen significant shifts from sectoral to horizontal measures and towards stressing the importance of SMEs, clusters and new technology, all delivered at the regional scale. This, however, is contrasted with continued elements of British and EU regional policy which have emphasised the attraction of inward investment in order to alleviate regional unemployment. The results suggest that such policies are not naturally compatible; that while both trade and FDI benefit skilled workers, they have adverse effects on the demand for unskilled labour in the UK. At the very least this suggests the need for a range of policies to tackle various targets (including in this case unemployment and social inclusion) and the need to integrate these into a coherent industrial strategy at various levels of governance, whether regional and/or national. This has important implications for the form of any "new" industrial policy. PUBLICATION ABSTRACT
This article reviews the empirical literature on job displacement. Job displacement is widespread and strongly countercyclical (tending to peak during economic downturns), but concentrated in ...industries and states that are doing poorly, relative either to other industries and states or to their own prior performance. Displaced workers experience more nonemployment than do nondisplaced workers, but the difference fades after about four years. In contrast, earnings losses of displaced workers are large and persistent. Outcomes for all displaced workers are heavily influenced by broader economic conditions, and are affected very little by workers' demographic characteristics. The effects of advance notice are not yet clear.
This paper examines the extent to which permanent terms of trade shocks have an asymmetric effect on private savings. The first part uses a simple three-period model to show that, if households ...expect to face binding borrowing constraints in bad states of nature, savings rates will respond asymmetrically to favorable movements in the permanent component of the terms of trade—in contrast to what conventional consumption-smoothing models would predict. The second part tests for the existence of asymmetric effects of terms of trade disturbances while controlling for various standard determinants of private savings. The results, based on panel data for non-oil commodity exporters of sub-Saharan Africa for the period 1980–1996, indicate that periods of increases in the permanent component of the terms of trade tend indeed be associated with higher rates of private savings.
This paper reviews British evidence regarding the value of travel time available from models developed since 1980. There are two main aspects to the review. First, a regression model has been ...developed to explain variations in the value of time across studies. Second, the author reports on a review of variations in the value of time within specific studies. The review also places the research in historical perspective, with reference to work conducted elsewhere. /// In diesem Aufsatz werden Ergebnisse britischer Modelle einer kritischen Betrachtung unterzogen, die sich mit dem Wert der Reisezeit beschäftigen und nach 1980 entstanden sind. Zwei Punkte bilden dabei den Kern der Analyse: Erstens wird in einer Regressionsanalyse versucht, die Variation des Werts der Zeit über verschiedene Studien hinweg zu erklären. Eine Betrachtung dieser Variation innerhalb ausgewählter Studien bildet dann den zweiten Schwerpunkt. Der Aufsatz ordnet die Forschung in einen historischen Kontext ein, und nimmt Bezug auf andere Arbeiten zum Thema. /// Cet article passe en revue les constatations de la Grande-Bretagne en ce qui concerne la valeur du temps de trajet, disponibles à partir de modèles développés depuis 1980. Cet examen se concentre autour de deux axes. Premièrement, un modèle de régression fut constitué afin d'expliquer les fluctuations de la valeur du temps observées dans diverses études. Deuxièmement, l'auteur rapporte sur une enquête de variations de la valeur du temps au sein d'études spécifiques. En outre, l'enquête place cette recherche dans une perspective historique, en se référant à des travaux dirigés dans d'autres pays. /// Este artículo revisa la evidencia británica sobre el valor del tiempo de viaje en modelos desarrollados desde 1980. La revista tiene dos aspectos principales. Primero, se desarrolla un modelo de regresión para explicar las variaciones en el valor del tiempo entre estudios. Segundo, el autor presenta una revista de las variaciones en el valor del tiempo en estudios concretos. La revista también sitúa la investigación en su perspectiva histórica, con referencia al rabajo desarrollado en otros lugares.
Each year around 8% of Swedish manufacturing firms leave an industry. Of the exit routes available, the least likely is firm closure. Firms are more likely to merge, become acquired or switch to a ...new industry. We investigate the importance of a range of firm and industry characteristics for the exit decision of Swedish firms from 1980–1996. From our analysis two patterns are evident. First, firms that close down appear to be the most distinct compared to those that remain within the sector. Second the same characteristics can have quite different associations with different exit strategies.
We investigate the linkage between changes in firm value and changes in capital allocation efficiency resulting from dismantling internal capital markets via spinoffs. We find no evidence of ...wholesale misallocation of capital pre-spinoff. On the average, excess value increases following spinoffs. Furthermore, changes in excess value are positively linked to changes in capital allocational efficiency following spinoff. We find that spinoff announcement returns are greater (smaller) when the parent allocates capital to the unit to be spun off in a seemingly less (more) efficient manner. Divested division capital expenditures move toward industry levels after spinoff, regardless of their relative investment opportunities.
This paper examines the impact of U.S. monetary policy shocks on the cross exchange rates of sterling, yen and mark. The main finding of the paper is a ‘delayed overshooting’ pattern for all currency ...cross rates examined (sterling/yen, yen/mark and mark/sterling) following an unexpected U.S. monetary policy change, which in turn generates excess returns. We also provide evidence that the ‘delayed overshooting’ pattern in cross exchange rates is accompanied by asymmetric interventions by central banks in the foreign exchange markets under consideration triggered by a U.S. monetary policy shock.
This article develops a structural dynamic programming model of investment and estimates the model using panel data on Chilean manufacturing plants for 19801983 at a substantially faster rate had ...there been no temporary increase in import prices associated with higher tariffs in the mid-1980s.
Please note this is a 'Palgrave to Order' title (PTO). Stock of this book requires shipment from overseas. It will be delivered to you within 12 weeks. This book studies the election of American ...state governors, 'an increasingly important group of political leaders', and makes comparisons with Senate and presidential elections.
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