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on Business Economics |
| By: | Jin, Yanhong; Li, Daiyue; Cheng, Mingwang |
| Keywords: | Productivity Analysis, Production Economics, International Relations/Trade |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335879&r=bec |
| By: | Fernando Leibovici; David Wiczer |
| Abstract: | This paper studies the role of credit constraints in accounting for the dynamics of firm exit during the Great Recession. We present novel firm-level evidence on the role of credit constraints on exit behavior during the Great Recession. Firms in financial distress, with tighter access to credit, are more likely to default than firms with more access to credit. This difference widened substantially in the Great Recession while, in contrast, default rates did not vary much by size, age, or productivity. We identify conditions under which standard models of firms subject to financial frictions can be consistent with these facts. |
| Keywords: | Firm exit; Great Recession; Credit constraints; Financial distress |
| JEL: | E32 G01 |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedmoi:96367&r=bec |
| By: | Çakir, Metin; Perez Castaño, Ana Melissa M.; Zeballos, Eliana |
| Keywords: | Marketing, Agricultural and Food Policy, Community/Rural/Urban Development |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335974&r=bec |
| By: | Khan, Abhimanyu; Peeters, Ronald |
| Abstract: | We develop a framework to analyse stability of cartels in differentiated Cournot oligopolies when multiple cartels may exist in the market. The consideration of formation of multiple cartels is in direct contrast to the existing literature which assumes, without further justification, that at most a single cartel may be formed, and we show that this consideration has markedly different implications for cartel stability. We define a cartel configuration to be stable if: (i) a firm in a cartel does not find it more profitable to leave the cartel and operate independently, (ii) a firm that operates independently does not find it more profitable to join an existing cartel, (iii) a firm in a cartel does not find it more profitable to join another existing cartel or form a new cartel with an independent firm, and (iv) two independent firms do not find it more profitable to form a new cartel. We show that now, when multiple cartels may exist in the market, a single cartel is never stable. |
| Keywords: | multiple cartels; stability; differentiated market. |
| JEL: | C70 D43 L13 |
| Date: | 2023–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117766&r=bec |
| By: | Venkateswaran, Gowthami; Baylis, Kathy; Pullabhotla, Hemant K. |
| Keywords: | Community/Rural/Urban Development, Agribusiness, International Development |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335894&r=bec |
| By: | Léa Marchal (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, IC Migrations - Institut Convergences Migrations [Aubervilliers], UP1 - Université Paris 1 Panthéon-Sorbonne); Guzmán Ourens (Tilburg University [Tilburg] - Netspar); Giulia Sabbadini (DICE - Düsseldorf Institute for Competition Economics - Heinrich Heine Universität Düsseldorf = Heinrich Heine University [Düsseldorf]) |
| Abstract: | This article shows that wage inequalities between native and immigrant workers depends on the export activity of the employing firm. We build a model with heterogeneous firms and workers showing that white-collar immigrants capture an informational rent in exporting firms that help them close the wage gap with natives. We use French employer-employee data for the manufacturing sector from 2005 to 2015 to support this mechanism. We show that wages react to changes in export intensity when the export destination coincides with the region of origin of immigrant workers. |
| Keywords: | Export, Firm, Immigrants, Wage inequality |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04118839&r=bec |
| By: | J. Atsu Amegashie |
| Abstract: | I consider a market with two firms, a minority group of customers, and a bigoted (racist, ethnocentric, xenophobic, or sexist) majority group of customers. There exists a Nash equilibrium with full segregation in which a low-price firm serves only the minority and a high-price firm serves only the majority. There is also a partial-integration equilibrium in which a high-price firm serves only the majority while a low-price firm serves both the minority and majority. Paradoxically, if the minority group is sufficiently big and the majority is sufficiently prejudiced, then both equilibria hold in the sense that the high-price firm does not lose customers, although its competitor charges a lower price. If the firms can price discriminate, none of these equilibria will hold. The partial integration equilibrium depends on how the prejudice of the majority is modelled. |
| Keywords: | customer discrimination, majority, markets, minority, segregation |
| JEL: | J15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10453&r=bec |
| By: | Lionel Fontagné (Banque de France, CEPII and Paris School of Economics); Philippe Martin (Sciences Po and CEPR); Gianluca Orefice (University Paris-Dauphine, PSL, CESifo and IUF) |
| Abstract: | Based on firm level data in the French manufacturing sector, we find that firms adapt quickly, strongly and through multiple channels to energy shocks, even though electricity and gas bills represent a very small share of their total costs. Over the period 1996-2019, faced with an idiosyncratic energy price increase, firms reduce their energy demand, improve their energy efficiency, increase intermediate inputs imports and optimize energy use across plants. Firms are also able to pass-through the cost shock fully on their export prices. Their production, exports and employment fall. A consequence of these multiple adjustment mechanisms is that the fall in profits is either non-significant, small or specific to only the most energy intensive firms. We also find that the impact of electricity shocks has weakened over time, suggesting that only firms able to adapt their production process to energy cost shocks have survived. Importantly, when faced with large electricity and gas price increases, firms are less able to reduce their consumption. These results shed light on the mechanisms of resilience of the European manufacturing sector in the context of the present energy crisis. |
| Keywords: | Energy crisis, Employment, Production, Competitiveness, Electricity, Gas. |
| JEL: | L6 Q41 Q43 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:dia:wpaper:dt202305&r=bec |
| By: | Dan Andrews; Elif Bahar; Jonathan Hambur |
| Abstract: | The consequences of the pandemic for potential output will partly hinge on its impact on productivity-enhancing reallocation. While recessions can accelerate this process, the more ‘random’ nature of the COVID-19 shock coupled with policy responses that prioritised preservation could disrupt productivity-enhancing reallocation. Our analysis based on novel high-frequency employment data for Australia shows that labour reallocation (and firm exit) remained connected to firm productivity over 2020 and 2021. However, outside of the initial acute phase of the shock the relationship weakened significantly compared to history. Australia’s job retention scheme (JobKeeper) initially reinforced the connection between growth and productivity, supporting more productive firms. But it became more distortive over time and as the economy recovered. |
| Keywords: | COVID-19, productivity, reallocation, recessions |
| JEL: | E24 E32 J63 O4 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-29&r=bec |
| By: | Olivier Beaumais (LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université, LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique); Mireille Chiroleu-Assouline (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We explore differences in firms' attitudes toward corporate social responsibility (CSR). Using a unique dataset covering 8, 857 French firms, collected by the National Institute of Statistics and Economic Studies (INSEE), we identify firms conducting conscious CSR and others with effective but unaware CSR activities. We then construct three CSR pillar scores for each firm, using Mokken scale analysis, a form of non-parametric item response analysis. The CSR scores, along with responses to specific questions, allow us to characterize firms that implement conscious or unaware CSR. We then estimate simple probit and count data models to show that a significant share of firms are in fact significantly engaged in unaware CSR, with no monotonic size effect. Cooperation with external actors such as NGOs mitigates the effect of firm size on the likelihood of conducting unaware CSR, while the effect of NGO campaigns against large firms is mainly to increase the environmental score of small firms in the same industry. |
| Keywords: | Corporate social responsibility, Non-parametric item response theory, Scoring, Stakeholders, SME, France |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-04003040&r=bec |