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than a lump-sum subsidy, both cutting public employment and cutting public spending on market goods induce an investment … boom. Making the tax system less progressive by cutting tax credits and the labour income tax rate induces an investment … boom as well. The effects of endogenous growth, adjustment costs for investment and non-Walrasian labour markets on these …
Persistent link: https://www.econbiz.de/10005791753
Firms expect certain investment expenditures. Firms realize certain investment expenditures. The difference is an … investment surprise. With the help of the IFO Investment Survey for the German manufacturing sector we measure firms …’ (quantitative) investment expectations and firms’ (quantitative) investment realizations on a yearly basis and construct a panel of …
Persistent link: https://www.econbiz.de/10011084608
product market, concerning in particular entry barriers, are negatively related to investment. The policy implication of our … analysis is clear: regulatory reforms, especially those that liberalize entry, are very likely to spur investment. …
Persistent link: https://www.econbiz.de/10005791979
fixed investment that became excessive and proved to be unsustainable, while the productivity acceleration helps to account …-01 collapse of investment and the stock market proves that good public policy matters, going beyond the narrowly defined …
Persistent link: https://www.econbiz.de/10005792478
been significant changes in saving and investment patterns across the world and imbalances have narrowed considerably. Does …
Persistent link: https://www.econbiz.de/10008468701
Abstract. U.S. households' debt skyrocketed between 2000 and 2007, and has been falling since. This leveraging (and deleveraging) cycle cannot be accounted for by the liberalization, and subsequent tightening, of credit standards in mortgage markets observed during the same period. We base this...
Persistent link: https://www.econbiz.de/10011083723
This paper argues that the U.S. financial crisis is a new type of crisis: a "financial black hole." Financial black holes are characterized by the breaking-up of credit market discipline and the large-scale financing of negative NPV projects. In a theoretical model, we explain how the...
Persistent link: https://www.econbiz.de/10008854497
We measure the amount of income insurance and cross-sectional consumption smoothing (lending and borrowing) achieved within subgroups of states, such as regions or clubs, e.g. the club of rich states. We find that there is as much income insurance between, as well as within, regions. By...
Persistent link: https://www.econbiz.de/10005504778
uncertainty, through its impact on precautionary savings and investment. The two approaches lead to costs of fluctuations that are …
Persistent link: https://www.econbiz.de/10005136677
The surge in the German current account surplus in the 2000s is often interpreted as the result of efficiency-enhancing structural reforms, especially in the labor market. However, this interpretation is puzzling because the growth rate of the German economy has been one of the lowest in the...
Persistent link: https://www.econbiz.de/10011083287