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on Business Economics |
| By: | Maximo Camacho; Matias Pacce; Camilo Ulloa |
| Abstract: | We characterize regional business cycles for Spain using monthly Social Security affiliations. Based on a set of Markov-switching models, we find substantial synchronization of regional business cycles, which has increased since the Great Recession. We do however evidence a regional leading and lagging performance that repeats itself across the different recessions. |
| Keywords: | Working Paper , Economic Analysis , Spain |
| JEL: | E32 C22 E27 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:bbv:wpaper:1720&r=bec |
| By: | Mehrotra, Neil (Federal Reserve Bank of Minneapolis); Crouzet, Nicolas (Northwestern University) |
| Abstract: | Drawing from confidential firm-level data of US manufacturing firms, we provide new evidence on the cyclicality of small and large firms. We show that the cyclicality of sales and investment declines with firm size. The effect is primarily driven by differences between the top 0.5% of firms and the rest. Moreover, we show that, due to the skewness of sales and investment, the higher cyclicality of small firms has a negligible influence on the behavior of aggregates. We argue that the size asymmetry is unlikely to be driven by financial frictions given 1) the absence of statistically significant differences in the behavior of production inputs or debt in recessions, 2) the survival of the size effect after directly controlling for proxies of financial strength, and 3) the predictions of a simple financial frictions model, in which unconstrained (large) firms contract more in recessions than constrained (small) firms. |
| Keywords: | Firm size; Business cycles; Financial accelerator |
| JEL: | E23 E32 G30 |
| Date: | 2017–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmwp:741&r=bec |
| By: | Shirokova, G.; Ivvonen, L. |
| Abstract: | This study examines how components of strategic entrepreneurship (exploration and exploitation) relate to Russian SMEs performance during the economic crisis and to what extent combinations of firm resources determine these relationships. In order to address these issues we surveyed 651 Russian private SMEs. Our results show that during the economic crisis exploitation is positively associated with SME’s performance. However, we found positive association of exploration with SME’s performance during the economic crisis instead of negative association. Our results also indicate that relationship between exploration as well as exploitation and firm performance is dependent on different combinations of firm resources. |
| Keywords: | strategic entrepreneurship, exploration, exploitation, SME, sfirm performance, economic crisis, human capital, financial capital, Russia, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:sps:wpaper:6454&r=bec |
| By: | Chatterjee, Rittwik; Chattopadhyay, Srobonti; Kabiraj, Tarun |
| Abstract: | Spillover of R&D results in oligopolistic industries may affect the R&D decisions of firms. How much a newly eveloped technology by a firm gets spilled over to its rival firms may or may not be observable by the concerned firm. This paper considers a two stage game involving two firms. In the first stage the firms decide whether to invest in R&D and in the next stage they compete in a Cournot duopoly market. The R&D incentives of firms are compared under alternative assumptions of complete and incomplete information scenarios involving general distribution function of types. The results indicate that the impact of availability of more information regarding rival’s ability to benefit from spilled over knowledge on R&D activities of firms is ambiguous. |
| Keywords: | R&D incentives, Duopoly, Asymmetric information, Spillover, Type distribution |
| JEL: | D43 D82 L13 O31 |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81371&r=bec |
| By: | A. Bergeaud; S.Ray |
| Abstract: | Adjustment costs impair the optimal allocation of production factor across firms. In this paper, we use the cost associated with corporate relocation to explore the effect of the adjustment costs of the premises size on factor demand. We rely on the tax on realized capital gains on real estate asset, which entails varying real estate adjustment costs across firms, to empirically study the effect of these frictions on firms' behaviour. We develop a general equilibrium model, with heterogeneous firms, that sheds light on the implication of the level of the fixed costs associated with the adjustment of real estate on the change in firms' labor demand following productivity shocks. This model predicts that employment growth of firms facing positive productivity shocks shrinks with the level of the frictions. Confronting these results using French firm-level data over the period 1994-2013, we find that higher adjustment costs constrain relocation and reduce job creation of the most dynamic firms. The highlighted frictions have noticeable macroeconomic effects. |
| Keywords: | Corporate real estate; Firms' relocation; Adjustment costs; Misallocation of resources. |
| JEL: | D21 D22 H25 J21 O52 R30 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:641&r=bec |
| By: | John Rand |
| Abstract: | Using a 10-year panel survey covering Vietnamese manufacturing firms, we consistently obtain firm-specific mark-up estimates and relate these to firm-level formality. The average firmspecific mark-up using a trans-log revenue production function specification is estimated to be 1,445, with substantial underlying variation across firm size, location, sector, and ownership form. Zooming in on firm-level registration, we find a formality premium of 16 per cent, even when controlling for selection into formality. Moreover, a firm size threshold exists, confirming that smaller informal firms are less likely to reap eventual benefits of formalization. Finally, we find remarkable similarity between average self-reported and estimated mark-ups, but dynamic aspects of the two estimates along key firm dimensions differ substantially. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2017-160&r=bec |
| By: | Jové Llopis, Elisenda; Segarra Blasco, Agustí, 1958- |
| Abstract: | The drivers for the adoption of an eco-innovation strategy have been widely explored in the recent literature but, to date, most of these studies have been carried out on manufacturing industries. Hence, this paper investigates the similarities and differences between service and manufacturing firms, distinguishing between the high-tech and lowtech sectors. Using panel data of 4,535 Spanish firms for the period 2008—2014, we specify a dynamic probit model with sample selection. In line with other contributions in the literature, our results confirm the importance of regulatory stimulus to eco-innovation, mainly in form of demand-pull and, especially, in terms of demand push (subsidies) for sectors with low technology intensities. Institutional sources of information seem to be a more important driver for services firms with high technology intensity, whereas manufacturing firms rely more on internal or other sources of information. Furthermore, we find that eco-innovation is highly persistent at the firm level in both sectors and at both technology intensities. Hence, past eco-innovation behaviour is clearly more decisive in explaining the current state of eco-innovation orientation. Keywords: eco-innovation strategy, environmental innovation, service sector, manufacturing sector, green strategy, Spain. JEL Classification Numbers: O31. Q55 |
| Keywords: | Planificació estratègica -- Aspectes ambientals, Innovacions tecnològiques -- Aspectes ambientals, Sector terciari, 33 - Economia, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/292434&r=bec |
| By: | Yanga, Shuying; Kim, Seongcheol |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsp17:168549&r=bec |
| By: | Baris Soybilgen (Istanbul Bilgi University) |
| Abstract: | We propose a factor augmented neural network model to obtain short-term predictions of U.S. business cycle regimes. First, dynamic factors are extracted from a large-scale data set consisting of 122 variables. Then, these dynamic factors are fed into neural network models for predicting recession and expansion periods. We show that the neural network model provides good in sample and out of sample fits compared to the popular Markov switching dynamic factor model. We also perform a pseudo real time out of sample forecasting exercise and show that neural network models produce accurate short-term predictions of U.S. business cycle phases. |
| Keywords: | Dynamic Factor Model; Neural Network; Recession |
| JEL: | E37 E31 |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:bli:wpaper:1703&r=bec |