AN NBER PUBLICATION
ISSUE: No. 8, August 2011
The Digest
A free monthly publication featuring non-technical summaries of research on topics of broad public interest
IPO activity in the United States has fallen compared to the rest of the world.
During the past two decades, there has been a dramatic change in IPO activity around the world. In The U.S. Left Behind: The Rise of IPO Activity Around The World (NBER Working Paper No. 16916), co-authors Craig Doidge, G. Andrew Karolyi, and Rene Stulz study cross-country IPO activity around the world, its evolution over time, and the role of financial globalization. Using a database...
Article
In The Psychological Costs of War: Military Combat and Mental Health (NBER Working Paper No. 16927), authors Resul Cesur, Joseph Sabia, and Erdal Tekin report that the mere length of deployment or breaks between deployments are far less significant for veterans experiencing post-traumatic stress disorder (PTSD) than the frequency of actual exposure to firefights. These researchers exploit the variation in overseas assignments that control for mental health prior to...
Article
Since manufacturing generates lower sales tax revenue than retailing, local officials may encourage retailing at the expense of manufacturing.
In many U.S. states, local governments can levy and keep revenue from sales taxes. These taxes give local government officials an incentive to encourage land use that will increase retail sales and increase retail employment. Since manufacturing generates lower sales tax revenue than retailing, local officials may encourage...
Article
Increased import competition with China has caused a significant technological upgrading in European firms.
In Trade-Induced Technical Change? The Impact of Chinese Imports on Innovation, IT, and Productivity (NBER Working Paper No. 16717), authors Nicholas Bloom, Mirko Draca, and John Van Reenen examine more than a half million firms in 12 European countries between 1996 and 2007. They find that every 10 percentage point rise in Chinese imports in a firm's industry...
Article
Both federal and state diesel and gasoline taxes [are fully passed on] to consumers... [and] are reflected immediately in retail prices.
The division of the burden of fuel taxes between producers and consumers, commonly referred to as "tax incidence," is a key element in current debates about energy policy. In Fuel Tax Incidence and Supply Conditions (NBER Working Paper No. 16863), authors Justin Marion and Erich Muehlegger examine the effect of diesel and gasoline...
Article
Roughly one third of founder teams divide their equity stakes equally.
The shares of entrepreneurial companies can be divided among the firm's founders in a number of ways that may, or may not, take account of the relative value of each one's contributions. One simple solution is to value all members equally, which avoids making value judgments and requires only minimal negotiation. However, an equal split of founder equity may not always be appropriate -- some...