In this paper we investigate the link between optimal level of leverage and macroeconomic uncertainty. Using the model of firm’s value maximization, we show that as macroeconomic uncertainty increases, captured by an increase in the variability of industrial production or inflation, firms decrease their optimal levels of borrowing. We test this prediction on a panel of non–financial US firms dr...

Using annual data from 1997–2014 of 30 provinces, municipalities, and autonomous regions, subdividing trended and cyclical volatility of macroeconomics and inflation, considering different indicators of financial development and financial structure, this paper investigated the impact of financial development and financial structure on macroeconomic volatility. The empirical results found that (...

This study investigates the responsiveness of manufacturing sector performance to major macroeconomic determinants in Nigeria, covering the period between 1981 and 2018. It contributes to attendant literature by examining the asymmetric impact of each of the macroeconomic variables, including GDP per capita, exchange rate, inflation rate, interest rate proxied by prime lending rate, and gross f...

Initial announcements of macroeconomic indicators are based on imprecise and incomplete information. Government statistical agencies routinely restate the initial estimates over the course of several subsequent years as more information becomes available. We find that simple accounting-based aggregates, such as earnings dispersion, can predict future restatements in macroeconomic estimates, inc...

Generally, international flows of capital and foreign direct investment attraction are challengeable issues in the literature of economic growth and development in emerging market countries. However, the fluctuations in foreign direct investment, including sudden flood and stop, will affect emerging markets' output and macroeconomic variables. Using an econometric model with unbalanced panel da...

Translation studies rely more and more on corpus data to examine specificities of translated texts, that can be translated from different original languages and compared to original texts. In parallel, more and more multilingual corpora are becoming available for various natural language processing tasks. This paper questions the use of these multilingual corpora in translation studies and show...

We explore methods for confronting model misspeci cation in macroeconomics. We construct dynamic equilibria in which private agents and policy makers recognize that models are approximations. We explore two generalizations of rational expectations equilibria. In one of these equilibria, decision-makers use dynamic evolution equations that are imperfect statistical approximations, and in the oth...