We find that investor sentiment should affect a firm's employment policy in a world with moral hazard and noise traders …. Consistent with the model's predictions, we show that higher sentiment among US investors leads to: (1) higher employment growth … worldwide; (2) lower labor productivity, as the growth in employment is not matched by real value added growth; and (3) positive …

country. In many transition economies TFP is seen to have been negative the last decade of the plan economy and starts … increasing and become positive after a (quite a) few years of transition. Many authors conclude that this is a gain in efficiency …