Is the stock market boom a result of the baby boom? This paper develops an overlapping generations model in which a baby boom is modeled as a high realization of a random birth rate, and the price of capital is determined endogenously by a convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of capital. The price of capital is ...

This paper addresses two hot topics of the contemporary debate, social capital and economic growth. Our theoretical analysis sheds light on decisive but so far neglected issues: how does social capital accumulate over time? Which is the relationship between social capital, technical progress and economic growth in the long run? The analysis shows that the economy may be attracted by alternative...

Jorge M. Agüero Muhammad Farhan Majid October 2015 Abstract Previous studies have shown that wars restrict the acquisition of human capital. We expand this literature by exploring how the stock of human capital is affected by wars. Applying a “missing people” approach to the 1994 Rwanda genocide we find that the size of the educated cohort --those with completed primary school or more-shrunk by...

We develop a model in which cash-constrained entrepreneurs seek a venture capitalist (VC) to finance a new firm. Costly monitoring is employed by VCs to reduce entrepreneurial moral hazard. When monitoring reveals poor performance, VCs want to punish the entrepreneur with liquidation. However, when assets are specific and liquidation would lead to a loss, VCs choose to renegotiate the terms of ...

This paper estimates a stochastic production frontier using time-series data for the aggregate Korean economy in 1977-2005 to examine whether public infrastructure stock reduces aggregate technical inefficiency in the gross domestic product. A stochastic production frontier is estimated in first-differenced form, and the one-sided residuals are regressed against the stock of public infrastructu...

The purpose of this paper is to investigate the association between the intellectual capital of firms and their earnings quality. The Research was conducted with 158 accepted companies and 948 firm-year observations from Iran stock market. Empirical studies were conducted based on hypothesis by Value Added Intellectual Coefficient as measures of intellectual capital and taking absolute value of...

This paper represents a first attempt at a tractable analysis of how monetary policy influences the income distribution in an economy. It presents a monetary growth model in which inflation affects credit market efficiency, and via this link, influences capital accumulation, and the income distribution. In the model, a fraction of the population is capitalists, who have access to a risky but hi...

This paper presents a new framework for human capital measurement. The generalized framework can (i) substantially amplify the role of human capital in accounting for cross-country income di¤erences and (ii) reconcile the existing con‡ict between regression and accounting evidence in assessing the wealth and poverty of nations. One natural interpretation emphasizes di¤erences across economies i...

The value of a firm’s securities measures the value of the firm’s productive assets. If the assets include only capital goods and not a permanent monopoly franchise, the value of the securities measures the value of the capital. Finally, if the price of the capital can be measured or inferred, the quantity of capital is the value divided by the price. A standard model of adjustment costs enable...

This paper examines the relationship between stock liquidity and capital structure, using a sample of 38 industrial companies listed on Amman Stock Exchange (ASE) over the time period 2000 through 2009. The univariate and panel regression analysis results show insignificant relationship between the three measures of liquidity (Amihud's (2002) illiquidity, modified turnover, and modified liquidi...