The current economic crisis is creating serious global effects on the real economy, especially in terms of solvency and economic stability of many companies, forced to interrupt their activities and to initiate bankruptcy proceedings. In this case, the assessment of the value of the industrial machinery that can be reused is a problem that often arises. In the literature different approaches to...

Discontinuities in the employment profile are supposed to cause wage cuts since they imply an interruption in the accumulation of human capital as well as a depreciation of the human capital stock built up in the past. In this paper, we estimate the return to effective experience, taking into account both the timing and the duration of non-work and part-time employment spells. Estimation result...

This paper develops the argument that accounting rules make the corporate income tax less salient and less distortionary by obscuring the timing of tax payments. I develop and estimate a model of investment where firms maximize a discounted weighted average of after-tax cash flows and accounting profits. The cost of capital, the tax wedge on the return on capital, and the impact of tax incentiv...

background considerable development of mri technology in diagnostic imaging, high cost of mri technology and controversial issues concerning official charges (tariffs) have been the main motivations to define and implement this study. objectives the present study aimed to calculate the unit-cost of mri services using activity-based costing (abc) as a modern cost accounting system and to fairly ...

It is seldom the case that one has the opportunity to compare investments as projected by a long-term multi-period model to what is eventually realized in practice. Further, although sensitivity analysis is of common use in any optimization setting, the impact of some parameters on strategic investments is not yet fully assessed in the context of the deregulated electricity industry. Starting w...

In a simple discrete-time version of Lucas (1988) we find that the Balanced Growth Path (BGP) is always unique optimal planner’s solution: with linear or strictly concave production functions, unbounded utility without human capital depreciation. When ”speed” accumulation high, working time constant and below its upper bound. Capital grows at factor, but degrowth also possible when this factor ...

In this paper, we propose a theoretical framework to investigate the impact of conflicts and wars on key macroeconomic aggregates and welfare. Using a panel data with 12 countries from 1875 onwards we first show that consumption drops more than output during conflicts, while the opposite is true during “peaceful” recessions. To handle both cases, we build a variation of a Real Business Cycle mo...

Heterogeneity in the Production of Human Capital We derive a tractable nonlinear earnings function which we estimate separately for each individual in the NLSY79 data. These estimates yield five important parameters for each individual: three ability measures (two representing the ability to learn and one the ability to earn), a rate of skill depreciation, and a time discount rate. In addition,...

The current international integration of financial markets provides a channel for currency depreciation to affect stock prices. Moreover, the recent financial crisis in Asia with its accompanying exchange rate volatility affords a case study to examine that channel. This paper applies a bivariate GARCH-M model of the reduced form of stock market returns to investigate empirically the effects of...