This paper derives a Cobb-Douglas matching function as the aggregate of the number of matches made by each firm in a large economy using results from the theory of heavy tail distributions. The model is then calibrated using the empirical distribution of firm sizes and stylized facts about social networks.The implied elasticity of the matching function is found to be close to those reported by ...

Bertrand competition is a model of competition used in economics, named after Joseph Louis François Bertrand (1822-1900). Specifically, it is a model of price competition between duopoly firms which results in each charging the price that would be charged under perfect competition, known as marginal cost pricing. The model has the following assumptions: There are at least two firms producing ho...

This paper seeks to conceptualise a new approach to the identification of the factors influencing the adoption of a political risk assessment (PRA) function. The research population will comprise a convenience sample of Czech international firms. The information whether or not a firm has set up a PRA function will be obtained via a questionnaire survey. By making use of firm value maximization ...

Optimal working capital management can positively effect on the Firm performance, but this relationship can be affected by major characteristics of the firm, making an important subject for research. This research investigates the moderating role of firm characteristics on the relation between working capital management and financial performance of the firms listed in TSE during 2008 – 2017 per...

The present study examines the impact of capital employed in buyback of shares on firm value for 180 firms listed in the Bombay Stock Exchange of India. The issue of buyback of shares in the period from 2006 to 2016 was examined. The firm value is measured by a proxy, enterprise value, as a substitute of share price. The results suggest that the firm value differs from pre and post buyback of s...

This paper studies a simple dynamic investment decision problem of a firm where adjustment costs have capital size effects. This type of setting possibly results in multiple steady states thresholds and a discontinuous policy function. We study the global dynamic properties of the model by employing the Hamilton-Jacobi-Bellman method and dynamic programming that help us in the numerical detecti...

Using a large firm-level dataset, this paper examines total factor productivity (TFP) and its determinants in China. Our preferred GMM estimation results indicate increasing returns to scale in most industries and a usually large positive trend representing technical change. Various firm characteristics such as age, ownership, political affiliation, export behavior, liquidity, and geographic lo...

We model the firm as a type of artificial neural network that plays a repeated Cournot game. Each period the firm must learn to map environmental signals to both demand parameters and it’s rival’s output choice. In this paper, though, this Cournot game is in the ’background,’ as we focus on the endogenous adjustment of network size. We investigate the long-run behavior of firm/network size as a...