This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to reproduce the main cyclical propert...

Most of the empirical work on investment is based on the existence of a relation between investment and the expected present val of marginal profits. Thus, in this paper we compute such a present value series, under various assumptions about demand and technology and examine its relation to investment. We find that variations in this present value series are, surprisingly, due more to variation...

This paper examines the long-run dynamics and the cyclical structure of the US stock market using fractional integration techniques, specifically a version of the tests of Robinson (1994a) which allows for unit (or fractional) roots both at the zero (long-run) and at the cyclical frequencies. We consider inflation, real risk-free rate, real stock returns, equity premium and price/dividend ratio...

Organizational ambidexterity still remains ambiguous in terms of the concept and vague in terms of feasible realizations, especially for SMEs. We analyze recent classifications of the concept and focus on cyclical ambidexterity as the appropriate means for SMEs to manage the tension between incremental and discontinuous innovation effectively. We argue that cyclical ambidexterity should be unde...