This paper analyses the general equilibrium implications of reforming pay-as-you-go pension systems in an economy with heterogeneous agents, human capital investment and capital-skill complementarity. It shows that increasing funding delivers in the long run higher physical and human capital and therefore higher output, but also higher wage and income inequality. The latter affects preferences ...

We analyze the relationship between legal institutions, innovation and growth. We compare a rigid (law set ex-ante) legal system and a flexible one (law set after observing current technology). The flexible system dominates in terms of welfare, amount of innovation and output growth at intermediate stages of technological development periods when legal change is needed. The rigid system is pref...

As China enlarged the investment in agriculture, the agricultural scientific instruments promoted rapidly. It required us to face the questions scientifically such as the procurement, management, resources sharing, evaluation and etc. in agricultural scientific instruments. Because of the lack of unified classification and code standards, it greatly limited the scientific procurement, efficient...

This paper is concerned with reusing and sharing behaviours of component Object Oriented Database Systems in a tightly coupled federated multidatabase system environment. In such a federation, users benefit from exploiting the behaviours available in the participating components that are not available in their local systems so they can capitalise on investment made in writing their code. To fac...

Domain Specific Languages (DSLs) provide a lightweight approach to incorporate formal techniques into the industrial workflow. From DSL instances, formal models and other artefacts can be generated, such as simulation models and code. Having a single source for all artefacts improves maintenance and offers a high return on investment of the initial modelling effort. Since DSLs can be used to ca...

Many studies find a strong negative association between crime and education. This raises the question whether crime reduces investment in human capital or whether education reduces criminal activity. This article investigates posed question by using fixed-effect estimation on data of Australian twins. We find early arrests (before the age of 18) both to have a strong effect on human capital acc...

Venture capitalists deliver investments to entrepreneurs in stages. This paper shows staged financing to be efficient. Staging lets investors abandon ventures with low early returns, and thus sorts good projects from bad. The primary implication from staging is that it is efficient to invest more in later rounds. The model yields a number of empirical implications on how the ratio of early to l...

This paper investigates a principal-agent model in which an owner (principal) optimizes a contract with a manager (agent) delegated to undertake an investment project. In the model, we explore the effects of costly exploration by which the manager learns the real value of development cost. We show that high exploration cost can lead to a pooling policy not contingent on project type. Further, a...

This paper studies the equity premium implications of a canonical New Keynesian model with investment. We find that the presence of a time-varying marginal cost dampens the expansionary impact of a positive technology shock. With a given fraction of firms standing ready to satisfy demand at predetermined prices, the variations in the marginal utility of consumption attributed to technology shoc...

On August 8, 2005, the Energy Policy Act of 2005 (EPAct 2005) increased the Section 48 investment tax credit (ITC) for commercial photovoltaic (PV) systems from 10% to 30% of the project’s “tax credit basis” (i.e., the dollar amount to which the ITC applies), and also created in Section 25D of the Internal Revenue Code a new 30% ITC (capped at $2,000) for residential solar systems. Both changes...