42 research outputs found

    Provision of Social Goods and Soft Budget Constraints

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    Firms in socialist and transitional economies are often obliged to provide a social good in addition to a private good, which makes it difficult for a government to commit not to bail out the firm once it is in financial trouble. This creates a soft budget constraint syndrome which causes the firm to underinvest ex ante in order to extract state subsidy and thereby reduces dynamic efficiency. In this paper, we show that separating the provision of social goods from private goods can harden budget constraints, while introducing competition into the private market may not.

    Complementarities in Innovation Policy

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    This paper develops a framework for testing discrete complementarities in innovation policy using European data on obstacles to innovation. We propose a discrete test of supermodularity in innovation policy leading to a number of inequality constraints. We apply our test to two types of innovation decisions: to innovate or not, and if so, by how much. We find that the evidence regarding the existence of complementarity in innovation policies depends on the phase of innovation that is targeted (getting firms innovative or increasing their innovation intensity) as well as on the particular pair of policies that is being considered. The two phases of the innovation process, i.e. the probability of becoming an innovator and the intensity of innovation, are subject to different constraints. Interestingly, there seems to be a need to adopt a package of policies to make firms innovate, while a more targeted choice among policies is necessary to make them more innovative.industrial organization ;

    Measuring Market Power in Input and Output Markets: An Empirical Application to Banking

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    This paper develops and estimates a model of market conduct in the US banking industry during the 1990s. Competition in both output and factor markets is measured in a static Cournot model in the spirit of Bresnahan (1989), Shaffer (1991,1994a), Neven and Roeller (1997), and others. Banks can exert market power in loans as well as in deposit markets. Previous studies on banking competition center on the structure conduct hypothesis, where reduced form models with market concentration measures are used to estimate the degree of competition. We consider a disaggregated structural model of bank loan markets, where bank's competitive behavior is measured in input and output markets. Our results indicate that the standard model which measures only output market behavior is potentially biased.

    Capacity pricing under uncertainty

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    Summary in GermanSIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 179 (96.8) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

    On the heterogeneity of firms

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    Summary in GermanSIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 179 (95.26) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

    On the heterogenity of firms

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    UuStB Koeln(38)-961102376 / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekSIGLEDEGerman

    Capacity and product market competition: measuring market power in a puppy-dog industry

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    Summary in GermanSIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 179 (97.31) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

    Rent sharing in the European airline industry

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    Summary in GermanSIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 179 (95.27) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

    Competition in the European banking industry: an aggregate structural model of competition

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    Summary in GermanSIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 179 (95.3) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman

    State aid, industrial restructuring and privatization in the New German Laender: competition policy with case studies of the shipbuilding and synthetic fibres industries

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    Summary in GermanSIGLEAvailable from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel W 179 (96.13) / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekDEGerman
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