Macroeconomic uncertainty regularly fluctuates in the data. Theory suggests complementarity between capital and labor inputs production can generate time-varying endogenous because concavity function influences how output responds to productivity shocks different states of economy. This paper examines whether is a quantitatively significant source by estimating nonlinear real business cycle mod...

We examine theoretically and empirically the determinants of the degree of complementarity between bidders and targets in mergers and acquisitions. Our paper extends existing literature, which demonstrates that firms that have stronger complementarities are more likely to become merger partners, by addressing the heterogeneity in bidders’ and targets’ complementarity in observed acquisitions. O...