How robust is the capital-skill complementarity hypothesis?

Article Abstract:

Substitutability between capital and blue-collar and white-collar labor is examined in the context of Griliches'(1969) analysis of capital-skill complementarity (CSC). Swedish manufacturing data is used in a framework wherein assumptions of scale economies and technological growth are varied. However, the results suggest that the robustness of the CSC hypothesis lies in model specification, not in either of the above assumptions. The study has important implications for the employment of labor categories, factor income distribution, and labor input aggregation.

Skilled labor, Resource allocation, Costs, Industrial, Industrial costs, Substitution (Economics)

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Ceilings on interest rates and investment: the example of Greece

Article Abstract:

The impact on private investment of credit controls in Greece was studied, and three flexible accelerator investment specifications suggested. A simple sequential specialisation process is used to choose equations, with bank finance shown to have some effect on investment. The financial system in Greece might be improved through deregulation, although fiscal revenues could be negatively affected by financial liberalisation. Greece's banking system is characterised by credit rationing resulting from controls on the interest rate.

Finance, taxation, & monetary policy, Greece, Monetary policy

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Sources of the financing hierarchy for business investment

Article Abstract:

Astudy was conducted to analyze variables which determine firm preference for investment financing. The study presents information problems in capital markets and transactions costs of external finance as competing factors which influence investment decisions. The sensitivity of investment spending to internal funds was measured to test the two factors. Results show that information symmetries are preferred for financing.

Business, Finance, Investments, Corporations, Corporate finance

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