RETAINED EARNINGS DYNAMIC, INTERNAL PROMOTIONS AND WALRASIAN EQUILIBRIUM

In the early stages of the process of industry evolution, firms are financially constrained and pay different wages because workers have heterogeneous expectations about the prospects for advancement offered by each firm's job ladder. This paper argues that, nevertheless, if the output market is competitive, the positive predictions of the perfectly competitive model are still a good description of the long run outcome. If firms maximize the discounted sum of constrained profits, financing expenditure out of retained earnings, profits are driven down to zero as the perfectly competitive model predicts. Ex ante identical firms may follow different growth paths in which workers work for a lower entry-wage in firms expected to grow more. In the steady state, however, workers performing the same job, in ex-ante identical firms, receive the same wage. I explain when the long run outcome is efficient, when it is not, and why firms that produce inefficiently might drive the efficient ones out of the market even when the steady state has the positive properties of a Walrasian equilibrium. To some extent, it is not technological efficiency but workers' self-fulfilling expectations about their prospects for advancement within the firm what explains which firms have lower unit costs, grow more and dominate the market.Industry Evolution - Market Selection Hypothesis - Production under Incomplete Markets - Retained Earnings Dynamic - Self-Fulfilling Expectations - Internal Labor Markets

Retained Earnings Dynamic, Internal Promotions and Walrasian Equilibrium

In the early stages of the process of industry evolution, firms are financially constrained and might pay different wages to workers according to their expectations about the prospects for advancement offered by each firm’s job ladder. This paper argues that, nevertheless, if the output market is competitive, the positive predictions of the perfectly competitive model are still a good description of the long run outcome. If firms maximize the discounted sum of constrained profits, financing expenditure out of retained earnings, profits are driven down to zero as the perfectly competitive model predicts. Ex ante identical firms may follow different growth paths in which workers work for a lower entry-wage in firms expected to grow more. In the steady state, however, workers performing the same job, in ex-ante identical firms, receive the same wage. I explain when the long run outcome is efficient, when it is not, and why firms that produce inefficiently might drive the efficient ones out of the market even when the steady state has the positive properties of aWalrasian equilibrium. To some extent, it is not technological efficiency but workers’ self-fulfilling expectations about their prospects for advancement within the firm that explains which firms have lower unit costs, grow more, and dominate the market.Industry Evolution ; Market Selection Hypothesis ; Production under Incomplete Markets ; Retained Earnings Dynamic ; Self-Fulfilling Expectations ; Internal Labor Markets

Market Selection and Payout Policy Under Majority Rule

The purpose of this paper is to explain how the choice between distributing cash through dividends or shares repurchases affects the firm’s ability to raise capital in the financial market. I assume investors have quadratic preferences over wealth but different prior beliefs about the likelihood a distribution takes place. At date zero agents purchase shares given their expectation about the firm’s payout method. At date 1 the firm announces whether the payout takes place that period. As in Brennan and Thakor [3], investors with different shareholdings have different incentives to gather information and, therefore, heterogeneous preferences about payout methods at date 1. I assume the firm adopts the payout method preferred by the majority of shareholders at date 1 under the one share/one vote rule. At date 2 the firm is liquidated and the remaining output is distributed among its shareholders. If at date zero agents disagree but not too much on the probability a distribution takes place, I show that a firm expected to pay dividends raises strictly more financial capital than an otherwise identical firm which is expected to repurchase shares. Therefore, a larger fraction of cash is distributed as dividend than through repurchases. One concludes that even in the presence of a small tax disadvantage financial markets favor dividend paying firms.Market Selection Hypothesis ; Payout Policy ; Production under Incomplete Markets

ECONOMIC SURVIVAL WHEN MARKETS ARE INCOMPLETE

We consider an infinite horizon economy with incomplete markets with two agents and one good. We begin with an example in which an agent's equilibrium consumption is zero eventually with probability one even if she has correct beliefs and is marginally more patient. We then prove the following general result: if markets are effectively incomplete forever then on any equilibrium path on which some agent's consumption is bounded away from zero eventually, the other agent's consumption is zero eventually. This implies that either some agent vanishes, in that she consumes zero eventually, or the consumption of both agents is arbitrarily close to zero infinitely often. Later we show that the first possibility is a robust outcome since for a wide class of economies with incomplete markets, there are equilibria in which an agent's consumption is zero eventually with probability one even though she has correct beliefs as in the example. Our results mark a sharp contrast with the case studied by Sandroni (2000) and Blume and Easley (2004) where markets are complete.Market selection hypothesis, General Equilibrium with Incomplete markets, Wealth accumulation

Learning from Texts: Activation of Information from Previous Texts during Reading

Learning often involves integration of information from multiple texts. The aim of the current study was to determine whether relevant information from previously read texts is spontaneously activated during reading, allowing for integration between texts (experiment 1 and 2), and whether this process is related to the representation of the texts (experiment 2). In both experiments, texts with inconsistent target sentences were preceded by texts that either did or did not contain explanations that resolved the inconsistencies. In experiment 1, the reading times of the target sentences introducing inconsistencies were faster if the preceding text contained an explanation for the inconsistency than if it did not. This result demonstrates that relevant information from a prior text is spontaneously activated when the target sentence is read. In experiment 2 free recall was used to gain insight into the representation after reading. The reading time results for experiment 2 replicated the reading time results for experiment 1. However, the effects on reading times did not translate to measurable differences in text representations after reading. This research extends our knowledge about the processes involved in multiple text comprehension: Prior text information is spontaneously activated during reading, thereby enabling integration between different texts

Lifetimes and Sizes from Two-Particle Correlation Functions

We discuss the Yano-Koonin-Podgoretskii (YKP) parametrization of the two-particle correlation function for azimuthally symmetric expanding sources. We derive model-independent expressions for the YKP fit parameters and discuss their physical interpretation. We use them to evaluate the YKP fit parameters and their momentum dependence for a simple model for the emission function and propose new strategies for extracting the source lifetime. Longitudinal expansion of the source can be seen directly in the rapidity dependence of the Yano-Koonin velocity.Comment: 15 pages REVTEX, 2 figures included, submitted to Phys. Lett. B, Expanded discussion of disadvantages of standard HBT fit and of Fig.

Chaotic sources and Percolation of strings

It is shown that different ways of interacting strings formed in high energy nucleus-nucleus collisions cause a different strength of the chaoticity parameter lambda of Bose-Einstein correlations. In particular, in the case of percolation of strings, lambda shows a peculiar dependence on the string density, very similar to the dependence of the fractional average cluster size. In both, the derivative on the string density is maximum at the critical point. The reasonable agreement with the existing experimental data indicates that percolation of strings can actually occurs.Comment: 11 pages, LaTeX, 3 eps figure

Genuine Three-Body Bose-Einstein Correlations and Percolation of Strings

Recent data show a large difference of the genuine three-body Bose-Einstein correlations in S-Pb collisions and in Pb-Pb central collisions being close to zero in the first case and to one in the second one. These results, unexpected from conventional approaches, are naturally explained by the percolation of colour strings produced in the collisions and subsequent incoherent fragmentation of the formed clusters.Comment: 8 pages, 2 figures, ReVTe

Caracterização do nível de oxidação de glutationa durante a dormência hibernal em gemas de macieira.

A macieira (Malus x domestica) apresenta a queda de folhas no final do ciclo e o estabelecimento da donnência hibemal (endodonnência). Durante a endodonnência, as plantas necessitam de regularidade e intensidade de baixas temperaturas para que iniciem a brotação e se estabeleça um novo ciclo vegetativo e produtivo. Entretanto, em regiões de clima temperado, como a Região Sul do Brasil, em muitos invemos ocorrem flutuações de temperatura que resultam em quedas de produção.Resumo