A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
- Topic classification is ongoing.
- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
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Results 541 resources
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We analyze firms that compete by means of exclusive contracts andmarket-share discounts (conditional on the seller's share of customers'total purchases). With incomplete information about demand,firms have a unilateral incentive to use these contractual arrangementsto better extract buyers' informational rents. However,exclusive contracts intensify competition, thus reducing prices andprofits and (in all Pareto undominated equilibria) increasing welfare.Market-share discounts, by contrast, produce a double marginalizationeffect that leads to higher prices and harms buyers. Wediscuss the implications of these results for competition policy
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This paper develops a model of demand, pricing and advertising inthe presence of social learning via word-of-mouth communicationbetween friends. In the model consumers must receive informationabout a monopolist's product in order to consider purchasing it.The presence of word-of-mouth is not sufficient for demand to bemore elastic and prices to be lower compared to an informedpopulation. I derive the comparative static results of connectivity,mean-preserving spread of friendships, and clustering of friends onprices. The optimal targets for advertising are not, generically, theindividuals with the most friends.
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There is a strong, positive, and well-documented correlationbetween education and health outcomes. In this paper, we attempt tounderstand to what extent this relationship is causal. Our approachexploits two changes to British compulsory schooling laws thatgenerated sharp across-cohort differences in educational attainment.Using regression discontinuity methods, we find the reforms did notaffect health although the reforms impacted educational attainmentand wages. Our results suggest caution as to the likely health returnsto educational interventions focused on increasing educationalattainment among those at risk of dropping out of high school, atarget of recent health policy efforts.
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We use a simple theory of a system of cities to decomposethe determinants of the city size distribution into three main components: efficiency, amenities, and frictions. Higher efficiencyand better amenities lead to larger cities but also to greater frictionsthrough congestion and other negative effects of agglomeration.Using data on MSAs in the United States, we estimate these citycharacteristics. Eliminating variation in any of them leads to largepopulation reallocations, but modest welfare effects. We apply thesame methodology to Chinese cities and find welfare effects that aremany times larger than those in the US.
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Firms face competing needs to expand product variety and reduce production costs. Access to larger markets enables innovation to reduce costs. Although firm scale increases, foreign competition reduces markups. Firms' ability to recapture lost markups depends on the interplay between within-firm competition and across-firm competition. Narrowing product variety eases within-firm competition but lowers market share. I provide a theory detailing the impact of trade policy on product and process innovation. Unbundling innovation provides new insights into welfare gains and innovation policy. Product innovation increases welfare beyond standard gains from trade. The relative returns to innovation policy change with trade liberalization.
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Do the repayment requirements of the classic microfinance contractinhibit investment in high-return but illiquid business opportunitiesamong the poor? Using a field experiment, we compare the classiccontract which requires that repayment begin immediately afterloan disbursement to a contract that includes a two-month graceperiod. The provision of a grace period increased short-run businessinvestment and long-run profits but also default rates. The results,thus, indicate that debt contracts that require early repaymentdiscourage illiquid risky investment and thereby limit the potentialimpact of microfinance on microenterprise growth and householdpoverty.
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Contract theory claims that renegotiation prevents attainment ofthe efficient solution that could be obtained under full commitment.Assessing the cost of renegotiation remains an open issue from anempirical viewpoint. We fit a structural principal-agent model withrenegotiation on a set of contracts for urban transport services. Themodel captures two important features of the industry as only twotypes of contracts are used (fixed price and cost-plus) and subsidiesare greater following a cost-plus contract than following a fixed priceone. We conclude that the welfare gains from improving commitmentwould be significant but would accrue mostly to operators.
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A growing literature establishes that high quality early childhoodinterventions targeted toward disadvantaged children havesubstantial impacts on later life outcomes. Little is known about themechanisms producing these impacts. This paper uses longitudinaldata on cognitive and personality skills from an experimentalevaluation of the influential Perry Preschool program to analyzethe channels through which the program boosted both male andfemale participant outcomes. Experimentally induced changes inpersonality skills explain a sizable portion of adult treatment effects.
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We measure the change in household spending caused by receipt of the economic stimulus payments of 2008, using questions added to the Consumer Expenditure Survey and variation from the randomized timing of disbursement. Households spent 12-30 percent (depending on specification) of their payments on nondurable goods during the three-month period of payment receipt, and a significant amount more on durable goods, primarily vehicles, bringing the total response to 50-90 percent of the payments. The responses are substantial and significant for older, lower-income, and home-owning households. Spending does not vary significantly with the method of disbursement (check versus electronic transfer).
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If trade barriers are managed by inefficient institutions, tradeliberalization can lead to greater-than-expected gains. We examineChinese textile and clothing exports before and after the eliminationof externally imposed export quotas. Both the surge in exportvolume and the decline in export prices following quota removalare driven by net entry. This outcome is inconsistent with a modelin which quotas are allocated based on firm productivity, implyingmisallocation of resources. Removing this misallocation accountsfor a substantial share of the overall gain in productivity associatedwith quota removal.
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Journals
- American Economic Review (237)
- Journal of Finance (67)
- Journal of Financial Economics (153)
- Review of Financial Studies (84)
Topic
- CEO (24)
- Bond (16)
- Mergers and Acquisitions (13)
- Capital Structure (11)
- Director (7)
Resource type
- Journal Article (541)