This paper investigates the link between the optimal level of nonfinancial firms' short-term leverage and macroeconomic and idiosyncratic sources of uncertainty. We develop a structural model of a firm's value maximization problem that predicts a negative relationship between uncertainty and optimal levels of borrowing. This proposition is tested using a panel of nonfinancial U.S. firms drawn from ...
Taxation changes the expectations of prospective university students about their future level and uncertainty of after-tax income. To estimate the impact of taxes on university enrollment, we develop and estimate a structural microeconometric model, in which a high-school graduate decides to enter university studies if expected lifetime utility from this choice is greater than that anticipated from ...
This paper investigates the association between maternal life satisfaction and the developmental functioning of two- to three-year-old children as well as the socio-emotional behaviorof five- to six-year-old children. We use data from the German Socio-Economic Panel Study (SOEP), which allows us to control for a rich set of child and parental characteristics and to use the mother's life satisfaction ...
This paper studies the long-run macroeconomic, distributional and welfare effects of tuition policy and student loans. We therefore form a rich model of risky human capital investment based on the seminal work of Heckman, Lochner and Taber (1998). We extend their original model by variable labor supply, borrowing constraints, idiosyncratic wage risk, uncertain life-span, and multiple schooling decisions. ...
This article analyzes differences in naming between East and West Germany. After World War II, Germany was split by the allied forces. Two Germanies emerged: the Federal Republic of Germany (FRG) and the German Democratic Republic (GDR). The country's division lasted about forty years (1949-1989), a time span in which vastlydifferent geo-political frameworks - Eastern bloc versus Western bloc - shaped ...
We study the labor supply effects of a change in child-subsidy policy designed to both increase fertility and shorten birth-related employment interruptions. The reform yields most of the intended effects.
