Internal financial constraints,external financial constraints,and investment choice: Evidence from a panel of UK firms

This paper uses a panel of 24,184 UK firms over the period 1993–2003 to study the extent to which the sensitivity of investment to cash flow differs at firms facing different degrees of internal and external financial constraints. Our results suggest that when the sample is split on the basis of the level of internal funds available to the firms, the relationship between investment and cash flow is U-shaped. On the other hand, the sensitivity of investment to cash flow tends to increase monotonically with the degree of external financial constraints faced by firms. Combining the internal with the external financial constraints, we find that the dependence of investment on cash flow is strongest for those externally financially constrained firms that have a relatively high level of internal funds.     

The Value of Transferable Skills

Most studies on skill transferability focus on the return to capabilities developed in the initial job and disregard the different characteristics of the origin and the destination industries. In contrast, this article assesses the borders of skill transferability by comparing the return to skills for firm stayers, firm changers in the same industry, and firm changers to other industries. Based on a sample of Portuguese employees in retail banking, our results confirm significant inter‐firm and inter‐industry skill transferability. Difference‐in‐differences estimates with propensity score matching show that firm switchers benefit from a wage premium compared to firm stayers. However, the wage premium drops sharply when movers leave the banking sector.     

Global and local determinacy in a one-step forward looking New Keynesian model

In this paper we consider a New Keynesian model for optimal monetary policy in a staggered fashion. We provide the relations of a non linear model of general economic equilibrium, implementing a suitable Taylor-type interest rate rule. We characterize the conditions that guarantee local determinacy and explore conditions under which local bifurcations of the target equilibrium may occur. Afterwards, we argue how local determinacy might be associated with global indeterminacy, providing some numerical examples.     

Income concentration and market demand

We analyze the effects of income concentration and income dispersionon market demand and its elasticity. We show that, followingan increase in income concentration towards the middle (measuredby variations in mean preserving spread), the increase in demandfaced by firms which serve at the margin middle income consumers,is associated with an increase in price elasticity—accordingly,the positive effects of the size of the market becoming widerare amplified by a higher degree of competition. Our resultshold for a large number of possible income distributions.     

Knowledge,innovation, and control towards accountability: a comparative case study

This paper deepens the countervailing relationship between control and innovation in highly innovative networks. It adopts a middle range theory perspective [Broadbent and Laughlin, 2013. Accounting Control and Controlling Accounting: Interdisciplinary and Critical Perspectives. 1st ed. Bingley: Emerald Group] integrated with the quintuple helix model (Carayannis and Campbell, 2010. “Triple Helix, Quadruple Helix and Quintuple Helix and How Do Knowledge, Innovation and the Environment Relate To Each Other?.” International Journal of Social Ecology and Sustainable Development 1 (1): 41–69] to explore how control and innovation interact and shape each other in the contexts of high complexity and intensive knowledge creation, towards the satisfaction of accountability demands by stakeholders. The research relies upon two case studies and reveals what are the factors positively shaping the interaction between innovation and control towards greater accountability. We document that successful changes are facilitated by the implementation of adequate and innovative informal control devices favouring collaborative relationships, reinforcing innovation and shared knowledge and capabilities within the organisation. The findings are relevant to all complex settings involved in multifaceted processes of producing knowledge and innovation.