presse@iwh-halle.de
Pills or puts?
Shuo Xia
Financial Times, February 2, 2024
We investigate whether pre-publication revisions of bank financial statements contain information about financial stability.
We measure workers’ beliefs about rents and outside options in a representative sample of German workers, and compare these beliefs with proxies for actual outside options. While subjective worker rents are large - 14% of salary on average - they do not stem from workers’ subjective wage premia at their current firm, but are entirely derived from non-wage amenities.
An active debate has centered on the importance of manufacturing for driving innovation in the U.S. economy. This paper offers an alternative framework that focuses on the role of suppliers of goods and services (the “supply chain economy”) in national performance.