This paper studies the effectiveness of different types of cohesion policies with respect to convergence of regions. A two-region agentbased macroeconomic model is used to analyze short-, mediumand long-term effects of policies improving human capital and fostering adoption of technologies in lagging regions. With fully integrated labor markets the human capital policy positively affects the ec...

We document differences in human-capital deployment between diversified and focused firms. We find that diversified firms have higher labor productivity and that they redeploy labor to industries with better prospects in response to changing opportunities. The opportunities and incentives provided in internal labor markets in turn affect the development of workers' human capital. We find that w...

Capital controls can take many different forms and are broadly defined as any restrictions on the movement of capital across a country’s borders. This article focuses on the debate on the merits of capital controls for emerging markets and developing economies. It describes the potential costs and benefits of capital controls, focusing on the recent empirical literature evaluating the impact of...

In order to credibly "sell" legitimate children to their spouse, women must forego more attractive mating opportunities. This paper derives the implications of this observation for the pattern of matching in marriage markets, the dynamics of human capital accumulation, and the evolution of the gene pool. A key consequence of the trade-off faced by women is that marriage markets will naturally t...

The theory of two price markets of Cherny and Madan (2010) yields closed forms for bid and ask prices. De…ning pro…ts as the di¤erence between the mid quote and the risk neutral expectation and capital as difference between the ask and the bid price one obtains precise expressions for these entities and thereby also returns. New expressions are developed for the bid and ask prices in terms of t...

a vast spectrum of resources are available for financing the development and further renovation of housing sector. in the last two decades the complexities and intervowening of financial methods have been developed in europe, u.s., and far east. even some of these new instruments have been transacted in international financial markets, linearization and deregulation has contributed to the devel...

Influence costs arguments explain the level of efficiency attained by internal capital markets in investor-oriented firms (IOFs). Using these developments in the theory of economic organization we study internal capital markets in diversified customer-owned firms. In such firms, influence costs may be considerably higher than in IOFs of comparable size and scope, due to multiple principle—agenc...

Using theories of internal capital markets, this paper examines the link between financial market integration and the value of global diversification. Based on a sample of 1,491 completed cross-border mergers and acquisitions (M&As) conducted by US acquirers during the 1990–2003 period, we find that, in general, US shareholders gain significant positive abnormal returns following the announceme...

HOSE WHO WISH to determine why banks fail typically focus on the characteristics of banks and their local markets that make them vulnerable to losses.1 A key factor often overlooked, however, is capital injections by shareholders. A bank whose losses exceed its capital need not fail, if its shareholders (existing or new) inject sufficient additional funds to restore its capital ratio to a level...

We build an infinite-horizon dynamic deterministic general equilibrium model with imperfect markets (because of borrowing constraints), in which heterogeneous agents invest in capital or/and financial asset, and consume. There is a representative firm who maximizes its profit. Firstly, the existence of intertemporal equilibrium is proved even if aggregate capital is not uniformly bounded. Secon...