Justin Kistler, R. Janakiraman, Subodha Kumar, V. Tiwari
We partnered with a leading U.S. academic medical center to empirically examine the impact of operational process changes designed to improve preoperative flow of patients through the perioperative environment. We focus on the implementation of centralized decision making and the introduction of an information technology (IT) enabled intraoperative prompt, on efficiency, as measured by preoperative patient processing time. We analyze over 33,000 individual surgical cases in a unique field experimental setting to conduct an empirical investigation of the effects of each intervention on patients' time spent in preoperative processing. To identify the causal effect of each process change, we leverage our field experimental research design and cast our analyses in the difference-in-differences modeling framework. We compare the preoperative patient processing time of two distinct patient groups, a treatment group that is impacted by the implemented operational changes and a control group that was not impacted by the changes, before and after each process change. Our results suggest a 3.4% reduction in preoperative processing time with only centralized decision making in place, yet a 10.8% reduction in preoperative processing time when centralized decision making is paired with the IT enabled intraoperative prompt. We also find evidence of a complementarity effect between our process changes and surgeon prior process experience. Our study contributes to the healthcare operations literature by demonstrating the benefits of coordinated information flow within the patient supply chain. We offer insights for hospital managers and healthcare operations scholars alike on the role of information coordination in improving preoperative patient flow with minimal impact on existing resources and staff.
{"title":"The Effect of Operational Process Changes on Preoperative Patient Flow: Evidence from Field Research","authors":"Justin Kistler, R. Janakiraman, Subodha Kumar, V. Tiwari","doi":"10.1111/poms.13301","DOIUrl":"https://doi.org/10.1111/poms.13301","url":null,"abstract":"We partnered with a leading U.S. academic medical center to empirically examine the impact of operational process changes designed to improve preoperative flow of patients through the perioperative environment. We focus on the implementation of centralized decision making and the introduction of an information technology (IT) enabled intraoperative prompt, on efficiency, as measured by preoperative patient processing time. We analyze over 33,000 individual surgical cases in a unique field experimental setting to conduct an empirical investigation of the effects of each intervention on patients' time spent in preoperative processing. To identify the causal effect of each process change, we leverage our field experimental research design and cast our analyses in the difference-in-differences modeling framework. We compare the preoperative patient processing time of two distinct patient groups, a treatment group that is impacted by the implemented operational changes and a control group that was not impacted by the changes, before and after each process change. Our results suggest a 3.4% reduction in preoperative processing time with only centralized decision making in place, yet a 10.8% reduction in preoperative processing time when centralized decision making is paired with the IT enabled intraoperative prompt. We also find evidence of a complementarity effect between our process changes and surgeon prior process experience. Our study contributes to the healthcare operations literature by demonstrating the benefits of coordinated information flow within the patient supply chain. We offer insights for hospital managers and healthcare operations scholars alike on the role of information coordination in improving preoperative patient flow with minimal impact on existing resources and staff.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124852534","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We develop an equilibrium model where cash holdings, costly refinancing policies, and managerial incentives are jointly determined to quantify the market's influence on management's ex ante behavior. We also derive a general formula that shows how agency and financing distortions shape payouts and compensation, two easily measured quantities. Our calibrated model estimates agency conflicts are nearly 10 times more severe than financial frictions for US public firms. Our analysis suggests that cutting corporate income taxes while introducing a tax on refinancing can reduce the relative severity of agency.
{"title":"A Model of Market Discipline","authors":"Colin Ward, Chao Ying","doi":"10.2139/ssrn.3601084","DOIUrl":"https://doi.org/10.2139/ssrn.3601084","url":null,"abstract":"We develop an equilibrium model where cash holdings, costly refinancing policies, and managerial incentives are jointly determined to quantify the market's influence on management's ex ante behavior. We also derive a general formula that shows how agency and financing distortions shape payouts and compensation, two easily measured quantities. Our calibrated model estimates agency conflicts are nearly 10 times more severe than financial frictions for US public firms. Our analysis suggests that cutting corporate income taxes while introducing a tax on refinancing can reduce the relative severity of agency.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117212827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The quantitative analyses related to firms’ default prediction extensively analyzed which balance sheet ratios include significant information on the probability of default of a firm. These analyses are typically aimed at measuring a generic default risk, while no analyses are aimed at describing the syndromes affecting firms and bringing them to default. Defining syndromes, which means describing how and why firms default, can be of fundamental importance for evaluating which specific weakness a firm is affected from, and which specific intervention can fix the problem. In this paper, we analyzed a panel of Italian small and medium sized companies (SMEs) for verifying if some syndromes can be found. Results shows that the main syndromes affecting the Italian SMEs are quite similar over sectors, even if each sector is characterized by specific equilibriums and values.
{"title":"Clustering Default Syndromes Across Italian SMEs","authors":"M. Modina, S. Zedda","doi":"10.2139/ssrn.3731789","DOIUrl":"https://doi.org/10.2139/ssrn.3731789","url":null,"abstract":"The quantitative analyses related to firms’ default prediction extensively analyzed which balance sheet ratios include significant information on the probability of default of a firm. These analyses are typically aimed at measuring a generic default risk, while no analyses are aimed at describing the syndromes affecting firms and bringing them to default. Defining syndromes, which means describing how and why firms default, can be of fundamental importance for evaluating which specific weakness a firm is affected from, and which specific intervention can fix the problem. In this paper, we analyzed a panel of Italian small and medium sized companies (SMEs) for verifying if some syndromes can be found. Results shows that the main syndromes affecting the Italian SMEs are quite similar over sectors, even if each sector is characterized by specific equilibriums and values.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131132807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this research is to analyze the relation between the number of bidders versus the minimum bid ratio (AEr)/percentage below the initial engineer’s estimate to type and size of project within Road Divisions Butwal and Shivapur. Bidding data of four consecutive fiscal years starting from 072/73 of two Road Divisions which are already completed its procurement stage were analyzed. The percentage below/contract awarded cost is directly proportional or a significant correlation was found with the number of the participated bidder in any project s of both divisions during the data study period. Bidders have to bid below 20% of the initial estimate that was found to get a project in hand by contractors and they are willing to bid low for the utilization of resources, types of equipment, manpower, and also to get experiences. This research revealed correlation coefficients between the number of bidders and percentage below engineers' estimates are 0.61 for the Butwal division and 0.67 for the Shivapur division. Correlation coefficients 0.82 and 0.83 was found in Nepalgunj and Mahendranagar. Percentage below engineers' estimate depends on 67 and 69% on the number of bidders in Nepalgunj and Mahendranagar respectively. E-bidding helped to promote competition along with low bidding. As there is 17% below with only hardcopy bidding but with e-bid the below percentages rises to 28% with more number of bidder per project. Improvement in existing offer granting framework with additional capability rules ought to be engaged by doling out the weight in the monitory term, soliciting a technique from the proclamation, upgraded e-offering framework, and affirmation for venture exhibitions of the undertaking before execution. This research would be useful for those who are involving in policy making and governing agencies like Public Procurement Monitoring Office and for making necessary amendments in existing rules.
{"title":"Association of Number of Bidders and Minimum Bid Ratio (AEr) with Effect of E-bidding of Different Project","authors":"Anjay Kumar Mishra, Megh Bahadur K. C., P. Aithal","doi":"10.2139/ssrn.3724112","DOIUrl":"https://doi.org/10.2139/ssrn.3724112","url":null,"abstract":"The purpose of this research is to analyze the relation between the number of bidders versus the minimum bid ratio (AEr)/percentage below the initial engineer’s estimate to type and size of project within Road Divisions Butwal and Shivapur. Bidding data of four consecutive fiscal years starting from 072/73 of two Road Divisions which are already completed its procurement stage were analyzed. The percentage below/contract awarded cost is directly proportional or a significant correlation was found with the number of the participated bidder in any project s of both divisions during the data study period. Bidders have to bid below 20% of the initial estimate that was found to get a project in hand by contractors and they are willing to bid low for the utilization of resources, types of equipment, manpower, and also to get experiences. This research revealed correlation coefficients between the number of bidders and percentage below engineers' estimates are 0.61 for the Butwal division and 0.67 for the Shivapur division. Correlation coefficients 0.82 and 0.83 was found in Nepalgunj and Mahendranagar. Percentage below engineers' estimate depends on 67 and 69% on the number of bidders in Nepalgunj and Mahendranagar respectively. E-bidding helped to promote competition along with low bidding. As there is 17% below with only hardcopy bidding but with e-bid the below percentages rises to 28% with more number of bidder per project. Improvement in existing offer granting framework with additional capability rules ought to be engaged by doling out the weight in the monitory term, soliciting a technique from the proclamation, upgraded e-offering framework, and affirmation for venture exhibitions of the undertaking before execution. This research would be useful for those who are involving in policy making and governing agencies like Public Procurement Monitoring Office and for making necessary amendments in existing rules.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"49 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132360459","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Digital platforms sometimes offer incentives to a subset of sellers to nudge behaviors, but how do these targeted incentives affect all sellers? In this paper, we study a policy change on a large e-commerce platform that offers financial incentives only to platform-certified sellers when they provide fast handling and generous return policies on their listings. We find that both the targeted and non-targeted sellers become more likely to adopt the promoted behavior after the policy change. Exploiting a large number of markets on the platform, we find that in markets with a larger proportion of the targeted population---hence more affected by the policy change---non-targeted sellers are more likely to adopt the promoted behavior and experience a larger increase in sales with little price changes. This finding is consistent with our key insight that a targeted incentive may increase demand for non-targeted sellers if both the targeted type and the promoted behavior are observed and valued by consumers. Our results have managerial implications for digital platforms that use targeted incentives.
{"title":"Targeted Incentives, Broad Impacts: Evidence from an E-commerce Platform","authors":"Xiang Hui, Meng Liu, T. Chan","doi":"10.2139/ssrn.3709380","DOIUrl":"https://doi.org/10.2139/ssrn.3709380","url":null,"abstract":"Digital platforms sometimes offer incentives to a subset of sellers to nudge behaviors, but how do these targeted incentives affect all sellers? In this paper, we study a policy change on a large e-commerce platform that offers financial incentives only to platform-certified sellers when they provide fast handling and generous return policies on their listings. We find that both the targeted and non-targeted sellers become more likely to adopt the promoted behavior after the policy change. Exploiting a large number of markets on the platform, we find that in markets with a larger proportion of the targeted population---hence more affected by the policy change---non-targeted sellers are more likely to adopt the promoted behavior and experience a larger increase in sales with little price changes. This finding is consistent with our key insight that a targeted incentive may increase demand for non-targeted sellers if both the targeted type and the promoted behavior are observed and valued by consumers. Our results have managerial implications for digital platforms that use targeted incentives.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"111 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126026152","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The continuous limit order book, in which messages are processed one by one in the order of receipt, is a prominent design feature of modern securities markets. Theoretical models show that this design imposes a cost on liquidity providers and suggest that this cost may be reduced by switching to batch auctions. We examine a recent opposite move, whereby a stock exchange switches from batch auctions to continuous trading. The move leads to a significant increase in adverse selection, which is partly offset by a reduction in inventory costs. The net liquidity effect of the switch is negative.
{"title":"On the Effects of Continuous Trading","authors":"Ivan Indriawan, R. Pascual, Andriy Shkilko","doi":"10.2139/ssrn.3707154","DOIUrl":"https://doi.org/10.2139/ssrn.3707154","url":null,"abstract":"The continuous limit order book, in which messages are processed one by one in the order of receipt, is a prominent design feature of modern securities markets. Theoretical models show that this design imposes a cost on liquidity providers and suggest that this cost may be reduced by switching to batch auctions. We examine a recent opposite move, whereby a stock exchange switches from batch auctions to continuous trading. The move leads to a significant increase in adverse selection, which is partly offset by a reduction in inventory costs. The net liquidity effect of the switch is negative.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132592058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Increases in the cost of research, specialization and reductions in public expenditure in health are changing the economic environment for the pharmaceutical industry. Gains in productivity and efficiency are increasingly important in order for firms to succeed in this environment. We analyze empirically the performance of efficiency in the pharmaceutical industry over the period 2010–2018. We work with microdata from a large sample of European firms of different characteristics regarding size, main activity, country of origin and other idiosyncratic features. We compute efficiency scores for the firms in the sample on a yearly basis by means of non-parametric data envelopment analysis (DEA) techniques. Basic results show a moderate average level of efficiency for the firms which encompass the sample. Efficiency is higher for companies which engage in manufacturing and distribution than for firms focusing on research and development (R&D) activities. Large firms display higher levels of efficiency than medium-size and small firms. Our estimates point to a decreasing pattern of average efficiency over the years 2010–2018. Furthermore, we explore the potential correlation of efficiency with particular aspects of the firms’ performance. Profit margins and financial solvency are positively correlated with efficiency, whereas employee costs display a negative correlation. Institutional aspects of the countries of origin also influence efficiency levels.
{"title":"Non Parametric Analysis of Efficiency: An Application to the Pharmaceutical Industry","authors":"Ricardo F Diaz, B. Sanchez-Robles","doi":"10.3390/math8091522","DOIUrl":"https://doi.org/10.3390/math8091522","url":null,"abstract":"Increases in the cost of research, specialization and reductions in public expenditure in health are changing the economic environment for the pharmaceutical industry. Gains in productivity and efficiency are increasingly important in order for firms to succeed in this environment. We analyze empirically the performance of efficiency in the pharmaceutical industry over the period 2010–2018. We work with microdata from a large sample of European firms of different characteristics regarding size, main activity, country of origin and other idiosyncratic features. We compute efficiency scores for the firms in the sample on a yearly basis by means of non-parametric data envelopment analysis (DEA) techniques. Basic results show a moderate average level of efficiency for the firms which encompass the sample. Efficiency is higher for companies which engage in manufacturing and distribution than for firms focusing on research and development (R&D) activities. Large firms display higher levels of efficiency than medium-size and small firms. Our estimates point to a decreasing pattern of average efficiency over the years 2010–2018. Furthermore, we explore the potential correlation of efficiency with particular aspects of the firms’ performance. Profit margins and financial solvency are positively correlated with efficiency, whereas employee costs display a negative correlation. Institutional aspects of the countries of origin also influence efficiency levels.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"114 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132937786","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Oliver Williamson has coined the term “fundamental transformation”. It captures the following situation: before they strike a deal, buyer and seller are protected by competition. Yet thereafter they find themselves in a bilateral monopoly. With common knowledge of standard preferences, both sides conclude the contract regardless if its expected value exceeds their outside options. We run an experiment to test whether additional behavioral reasons deter mutually beneficial trade. If the risk materializes, another individual makes a windfall profit. She does so by intentionally exploiting the first individual. The first individual is let down, although she has knowingly exposed herself to this risk. Participants sell the opportunity to enter the contractual relationship at a price below its expected value. This effect is driven by risk aversion, and already present if the risk is stochastic. Behavioral effects are heterogeneous. About a quarter of participants exhibit the hypothesized additional deterrent effect.
{"title":"Does the Fundamental Transformation Deter Trade? An Experiment","authors":"C. Engel, Eric A. Helland","doi":"10.2139/ssrn.3685692","DOIUrl":"https://doi.org/10.2139/ssrn.3685692","url":null,"abstract":"Oliver Williamson has coined the term “fundamental transformation”. It captures the following situation: before they strike a deal, buyer and seller are protected by competition. Yet thereafter they find themselves in a bilateral monopoly. With common knowledge of standard preferences, both sides conclude the contract regardless if its expected value exceeds their outside options. We run an experiment to test whether additional behavioral reasons deter mutually beneficial trade. If the risk materializes, another individual makes a windfall profit. She does so by intentionally exploiting the first individual. The first individual is let down, although she has knowingly exposed herself to this risk. Participants sell the opportunity to enter the contractual relationship at a price below its expected value. This effect is driven by risk aversion, and already present if the risk is stochastic. Behavioral effects are heterogeneous. About a quarter of participants exhibit the hypothesized additional deterrent effect.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115488456","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Calabrò, M. Cameran, Domenico Campa, Angela Pettinicchio
The strategic choices of family firms are influenced by economic and non-economic reference points. We contend that the preservation of the affect-related values a family derives from its ownership position in a firm (i.e., socio-emotional wealth – SEW) affects financial reporting quality and earnings management strategies. Using the voluntary International Financial Reporting Standards (IFRS) adoption by Italian unlisted family firms as a natural laboratory setting, we found that the level of SEW endowment impacts on financial reporting quality. Furthermore, we observe that IFRS adoption is associated with less accrual but higher real activity manipulation for increasing levels of SEW endowment.
{"title":"Financial Reporting in Family Firms: A Socio-Emotional Wealth Approach Toward Information Quality","authors":"A. Calabrò, M. Cameran, Domenico Campa, Angela Pettinicchio","doi":"10.2139/ssrn.3670611","DOIUrl":"https://doi.org/10.2139/ssrn.3670611","url":null,"abstract":"The strategic choices of family firms are influenced by economic and non-economic reference points. We contend that the preservation of the affect-related values a family derives from its ownership position in a firm (i.e., socio-emotional wealth – SEW) affects financial reporting quality and earnings management strategies. Using the voluntary International Financial Reporting Standards (IFRS) adoption by Italian unlisted family firms as a natural laboratory setting, we found that the level of SEW endowment impacts on financial reporting quality. Furthermore, we observe that IFRS adoption is associated with less accrual but higher real activity manipulation for increasing levels of SEW endowment.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131676285","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
P. Andrade, Olivier Coibion, E. Gautier, Y. Gorodnichenko
We study how firms’ expectations and actions are affected by both aggregate and industry-specific conditions using a survey of French manufacturing firms. We document an important new stylized fact. In response to industry-level shocks that have no aggregate effects, firms’ aggregate expectations respond persistently. This is consistent with “island” models in which firms use the local prices they observe to make inferences about broader aggregate conditions. We then assess the extent to which these patterns are related to observable characteristics of firms and the industries in which they reside. Finally, we extend the analysis to firms’ expectations over their own future price changes and document how these respond to both industry and aggregate variation.
{"title":"No Firm Is an Island? How Industry Conditions Shape Firms’ Expectations","authors":"P. Andrade, Olivier Coibion, E. Gautier, Y. Gorodnichenko","doi":"10.2139/ssrn.3690946","DOIUrl":"https://doi.org/10.2139/ssrn.3690946","url":null,"abstract":"We study how firms’ expectations and actions are affected by both aggregate and industry-specific conditions using a survey of French manufacturing firms. We document an important new stylized fact. In response to industry-level shocks that have no aggregate effects, firms’ aggregate expectations respond persistently. This is consistent with “island” models in which firms use the local prices they observe to make inferences about broader aggregate conditions. We then assess the extent to which these patterns are related to observable characteristics of firms and the industries in which they reside. Finally, we extend the analysis to firms’ expectations over their own future price changes and document how these respond to both industry and aggregate variation.","PeriodicalId":430354,"journal":{"name":"IO: Empirical Studies of Firms & Markets eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123340695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：