Human capital is considered as the main source of organization’s competitive advantage. The necessity of identifying the notion of human capital from the point of view of its intellectual resources is justified. Knowledge is presented as the major component of human capital and the key factor in the process of intellectual products development. Implementation of information technologies in the ...

This paper studies interjurisdictional competition in the fight against crime and its impact on occupational choice and the allocation of capital. In a world where capital is mobile, jurisdictions are inhabited by individuals who choose to become workers or criminals. Because the return of the two occupations depends on capital, and because investment in capital in a jurisdiction depends on its...

Whether or not the marginal product of capital (MPK) differs across countries is a question that keeps coming up in discussions of comparative economic development and patterns of capital flows. Using easily accessible macroeconomic data we find that MPKs are remarkably similar across countries. Hence, there is no prima facie support for the view that international credit frictions play a major...

Two-digit manufacturing industry-level production functions are used to test efficiency wage propositions. Conclusive tests require functional forms which allow differences in elasticities of substitution between observable human capital, wage premia and other inputs. Results demonstrate that unexplained industry wage premia and higher unemployment rates raise productivity. Wage premia and the ...

This study examines whether firms issue capital expenditure forecasts as a commitment to not engage in expropriation of lenders through opportunistic investment activities. We find that firms with higher leverage and lower credit quality are more likely to issue capital expenditure forecasts and deviate less from the forecasts. Furthermore, for firms that issue capital expenditure forecasts, lo...

This paper investigates the effect of increased diversification on the internal capital market. Previous literature examines the relationship of lowering diversification level and internal capital market. They find that internal capital market becomes more efficient as firms spin off poorly performing segments. This paper examines how the efficiency of the internal capital market changes after ...

A new wave of bank privatizations in the past decade has significantly changed the ownership structure of banking systems around the world. This paper explores how these changes affect the allocation of capital within countries. We show that the decline in government ownership of banks has a different impact on capital allocation efficiency, depending on whether foreigners or large domestic sha...