A Structural Model of Human Capital and Leverage - Duke ...

More documents

Recommendations

Info

Mean Book Leverage .15 .2 .25 .3 .35 .4 0 2 4 6 8 10 Labor Intensity Deciles Figure 3: Book Leverage and Labor Intensity. The figure plots mean book leverage against deciles of labor intensity. Firms are sorted into deciles based on labor intensity, then within-decile means of book leverage are calculated. The data is taken from Compustat after dropping financial firms. Only firms who report labor expenses are included in the sample. 37 ®
Firm Value 3 2.5 2 1.5 1 0.5 Panel A 0 −2 −1 0 1 2 3 Net Worth Firm Value 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 Panel B 0.2 0 0.5 1 1.5 2 2.5 Employees Figure 4: Value function. Panel A plots the firm’s value as a function of net worth, while Panel B plots the firm’s value as a function of its labor stock. In each panel, the dashed line fixes productivity at the long-run average level, the dotted line fixes z 1.5 standard deviations above the mean, and the solid line fixes z 1.5 standard deviations below the mean. 38
Page 1 and 2: A Structural Model of Human Capital
Page 3 and 4: Additionally, I assume that labor a
Page 5 and 6: ecoming unemployed drops, so it bec
Page 7 and 8: Rampini and Viswanathan (2010) deve
Page 9 and 10: is on the market to book ratio. Mov
Page 11 and 12: Positive dividends are subject to t
Page 13 and 14: 4.1 Labor Market Equilibrium In thi
Page 15 and 16: endogenous default probability, the
Page 17 and 18: is increasing in the probability of
Page 19 and 20: Note that the critical value for de
Page 21 and 22: Substituting in the solution for ω
Page 23 and 24: employees who likely suffer more si
Page 25 and 26: long-run mean, the dotted line fixe
Page 27 and 28: ottom half of the panel shows the l
Page 29 and 30: References Acemoglu, Daron, 2002, T
Page 31 and 32: Jermann, Urban, and Vincenzo Quadri
Page 33 and 34: Table 2: Book Leverage and Labor In
Page 35 and 36: Table 5: Leverage and the Cross-Sec
Page 37: Mean Market Leverage .15 .2 .25 .3
Page 41: Marginal Cost 2.5 2 1.5 1 0.5 Margi

A Structural Model of Human Capital and Leverage - Duke ...

Create successful ePaper yourself

Delete template?

Save as template?