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Protection for Sale with Imperfect Rent Capturing

Facchini, Giovanni - 2005

Structurally estimating the Grossman and Helpman (1994) model using coverage ratios that include non-tariff barriers leads to biased parameter estimates. We develop a "protection for sale" theoretical framework consistent with the data, by explicitly allowing for non-tariff barriers. Introducing...

Persistent link: https://www.econbiz.de/10012467416

Schumpeterian Profits in the American Economy : Theory and Measurement

Nordhaus, William D. - 2004

The present study examines the importance of Schumpeterian profits in the United States economy. Schumpeterian profits are defined as those profits that arise when firms are able to appropriate the returns from innovative activity. We first show the underlying equations for Schumpeterian...

Persistent link: https://www.econbiz.de/10012468260

The Social Value of Financial Expertise

Kurlat, Pablo - 2016

I study expertise acquisition in a model of trading under asymmetric information. I propose and implement a method to estimate the ratio of social to private marginal value of expertise. This can be decomposed into three sufficient statistics: traders' average profits, the fraction of bad assets...

Persistent link: https://www.econbiz.de/10012456627

Host-MNC Relations in Resource-Rich Countries

Chichilnisky-Heal, Natasha - 2015

We discuss the relationship between a resource-rich developing country and a multi-national corporation (MNC) that is developing its resources for the international market. We model the connections between transparency, permeability (defined as the amount of resource rent that leaves the...

Persistent link: https://www.econbiz.de/10012456958

Preventives Versus Treatments

Kremer, Michael - 2015

risk, then a monopolist would have more difficulty extracting surplus with a preventive than with a treatment because … treatment consumers, having contracted the disease, no longer differ in disease risk. We show that the ratio of preventive to …. Calibrations for HIV and heart attacks based on risk factors in the U.S. population suggest that the distribution of disease risk …

Persistent link: https://www.econbiz.de/10012457656

Informational Rents, Macroeconomic Rents, and Efficient Bailouts

Philippon, Thomas - 2011

We analyze government interventions to alleviate debt overhang among banks. Interventions generate two types of rents. Informational rents arise from opportunistic participation based on private information while macroeconomic rents arise from free riding. Minimizing informational rents is a...

Persistent link: https://www.econbiz.de/10012461931

A Litner Model of Payout and Managerial Rents

Lambrecht, Bart M. - 2010

accomplished by borrowing or lending. Payout is not cut back to finance capital investment. Risk aversion causes managers to …

Persistent link: https://www.econbiz.de/10012462445

Rent Rigidity, Asymmetric Information, and Volatility Bounds in Labor Markets

Bruegemann, Bjoern - 2007

Recent findings have revived interest in the link between real wage rigidity and employment fluctuations, in the context of frictional labor markets. The standard search and matching model fails to generate substantial labor market fluctuations if wages are set by Nash bargaining, while it can...

Persistent link: https://www.econbiz.de/10012465625

Competitive Rent Preservation, Reform Paralysis, and the Persistence of Underdevelopment

Rajan, Raghuram G. - 2006

Initial inequality in endowments and opportunities, together with low average levels of endowments, can create constituencies in a society that combine to paralyze reforms, even though the status quo hurts them collectively. Each constituency prefers reforms that expand its opportunities, but in...

Persistent link: https://www.econbiz.de/10012466575

How Wide is the Scope of Hold-Up-Based Theories? Contractual Form and Market Thickness in Trucking

Hubbard, Thomas N. - 1999

How far do the contractual implications of hold-up-based theories (Klein, Crawford, and Alchian (1978), Williamson (1979, 1985)) extend? I investigate this in the context of trucking. Quasi-rents in trucking are generally smaller than in the contexts studied in the previous empirical literature....

Persistent link: https://www.econbiz.de/10012471437