The relationship between financial development and growth has been the subject of intense scrutiny. Economists debate whether finance causes growth [Hicks (1969), Schumpeter (1934)], or whether it is growth that triggers the development of financial markets [Robinson (1952)]. This paper proposes...

This paper studies how learning from neighboring firms affects new exporters’ performance and dynamics. We develop a statistical decision model in which a firm updates its prior belief about demand of a foreign market based on the number of neighbors currently selling there, the level and...

In this paper, we propose a theoretical model to study the effect of income insecurity of parents and offspring on the child's residential choice. Parents are partially altruistic toward their children and will provide financial help to an independent child when her income is low relative to the...

In this paper, we study the dynamics of innovation financing as a new industry emerges. Specifically, in an environment where the profitability of an industry is uncertain, we consider the dynamics of the adoption of innovations/projects and the relative shares of bank and venture capital...

In this paper, we investigate incentives other than altruism that developed countries have in improving technologies specific to developing countries. We propose a simple model of international trade between two regions, in which all individuals have similar preferences over an inferior good and...

than men. From an employer's perspective, in their fertile age they are also at 'risk' of pregnancy. Both factors potentially affect hiring practices of firms. We conduct a largescale correspondence test in Germany, Switzerland, and Austria, sending out approx. 9,000 job applications, varying...

In this paper, we propose a theoretical model to study the effect of income insecurity of parents and offspring on the child’s residential choice. Parents are partially altruistic toward their children and will provide financial help to an independent child when her income is low relative to...

We investigate whether exposure to export markets improves plant productivity. Our estimation framework adds export experience as an additional state variable and a fixed cost of entry into export markets to Olley and Pakes’s (1996) behavioral model. We find robust evidence of a positive...