Policymakers' efforts to boost trend output growth may be hampered by the presence of a tradeoff between productivity gains and job creation. This paper presents empirical evidence that the negative relationship between productivity growth and employment growth that prevailed in the 1960s and 1970s has disappeared since then. This finding...
Recent research in empirical finance has documented that expected excess returns on bonds and stocks, real interest rates, and risk shift over time in predictable ways. Furthermore, these shifts tend to persist over long periods of time. This paper proposes an empirical model that is able to capture these complex...
This white paper report describes a study of human and organizational risk within NASA's Team X, a conceptual mission design team. A grounded theory approach was used to develop computational models for risk analysis. Among the major findings in the analysis were identification of critical personnel, risk of turnover and...
From the executive summary: ‘Financing decisions seem to violate central predictions of the tradeoff and pecking order models. Contradicting the paucity of outside equity decisions predicted by the pecking order, most firms issue or retire equity each year. The tradeoff model’s main problem is that more profitable firms have less...
Technology decisions need not be subject to a tradeoff of an ‘Open best-of-breed’ approach for an ‘Integrated single source’ approach, or vice versa. It is perfectly reasonable, indeed wise, to demand both from technology providers. Technology decisions are now being viewed as truly strategic, encouraging financial institutions to review their...
This article focuses on online selling and live selling which is one of the effective selling channels. A seller choosing between auctioning online and live faces a tradeoff: lower transaction costs online against more rents left with the bidders. This article models this tradeoff, and apply the theory to auctions...
1. Introduction The Phillips curve tradeoff between inflation and output or between inflation and unemployment has long been central to the design and evaluation of monetary policy. While earlier policy debates emphasized inflation-output tradeoffs in levels, the focus today is on the choice between the variability of inflation and...
This paper uses a simple two-period model to study how firms make layoff decisions in the presence of adverse shocks. It analyzes how the amount and sequencing of downsizing are determined when workers' expectations about their job security affects their on-the-job performance. The paper finds a fundamental tradeoff between laying...
The article investigates the relationship between corporate loan spreads and maturity to test whether lenders are compensated for longer maturity loans or limit their exposure by forcing riskier borrowers to take short-term loans. Earlier studies reject the tradeoff hypothesis. It uses the LPC Deal Scan database to create a matched...
The US Food and drug Administration FDA is estimated to regulate markets accounting for about 20% of consumer spending in the US. This paper proposes a general methodology to evaluate FDA policies, in general, and the central speed-safety tradeoff it faces, in particular. It applies this methodology to estimate the...
This article examines the productive efficiency levels present in the market for residential real estate brokerage services by employing the stochastic frontier approach. At the time, this study was conducted that examined productive efficiency in this sector employed data envelopment analysis. This current article addresses potential statistical limitations of Data...
The article finds that past stock market variance forecasts excess stock market returns and that its predictive ability is greatly enhanced if the consumption-wealth ratio is also included in the forecasting equation. While the risk-return tradeoff is found negative if the latter is used as the instrumental variable for the...
The Fiscal Responsibility Laws FRL being implemented around the world inevitably involve a tradeoff between fiscal discipline and flexibility. Accurate, unbiased revenue forecasts mitigate this tradeoff by helping policymakers facing stricter anti-deficit laws avoid emergency cuts and helping to realistically assess feasibility of expenditure commitments in countries with more flexible...
This article characterizes and measures a long-run risk return tradeoff for the valuation of financial cash flows that are exposed to fluctuations in macroeconomic growth. This tradeoff features components of financial cash flows that are only realized far into the future but are still reflected in current asset values. It...
IBM (NYSE: IBM) today announced the Carbon Tradeoff Modeler, a first-of-a-kind tool that enables organizations to analyze and manage the climate impact of their supply chains. The tool allows organizations to understand the outcome of critical tradeoffs to make smarter energy choices and better economic decisions by optimizing on...
The globalization hazard hypothesis maintains that the current account reversals and asset price collapses observed during 'Sudden Stops' are caused by global capital market frictions. A policy implication of this view is that Sudden Stops can be prevented by offering global investors price guarantees on emerging markets assets. These guarantees,...
This paper provides a comprehensive analysis of the risk-return characteristics, risk exposures, and performance persistence of various hedge fund strategies using a database on hedge fund indices and individual hedge fund managers. In a mean variance framework, we find that a combination of alternative investments and passive indexing provides significantly...
Puget Sound it isn't, but Chicago's real estate brokers are hoping that unique features like Lake Michigan will help sell Boeing Co. transplants on their new hometown. ``There is going to be pretty much an apples-to-apples tradeoff for what they'r Puget Sound it...
Using premium transportation is a wise, economical decision for the Air Force; however, opportunities may exist for using alternatives to premium transportation in the CONUS. Air Force supply policies are closely linked to the use of premium transportation. The logic for these policies is based on the classic tradeoff...
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