Abstract This paper uses data on US exports to decompose into the number of exporting firms (the extensive margin) and average export sales intensive margin). We show how a range proxies for trade costs has different impacts two margins. Distance negative effect both margins, but magnitude is considerably larger margin. Most variables capturing language, internal geography, infrastructure import cost barriers work through that these results are consistent with Melitz‐style model...

Abstract We present new evidence from a unique survey of firms across Europe on downward wage rigidity in both real and nominal terms. Our results indicate that rigidities are related to workforce composition manner is consistent with theoretical models. also find depends the labour market institutional environment. Collective bargaining coverage positively rigidity, measured basis indexation. Downward associated extent permanent contracts this effect stronger countries stricter employment...

The negative relationship between tax rates and FDI is well known. This paper looks at how complexity of the system affects . Fulfilling requirements can be time‐consuming, this implies a cost for more complex systems. Alternatively, may provide opportunities to reduce overall bill. We find that measures have significant inhibiting effect on presence country pair, but little impact level flows. A 10% reduction in comparable one percentage point effective corporate rates.

Using survey data from 2009 to 2011, we analyse the effects of recent euro area economic, financial and private debt crisis on supply demand for bank finance small medium enterprises (SMEs). At country level, identify three distinct aspects in affecting firm credit through different channels. Controlling fixed effects, impact a weak real economy operates both by reducing firms' financing lenders increasing loan rejections tightening terms conditions allocated. On other hand, have no...

The UK exit from the European Union (Brexit) is likely to have a range of impacts, with trade flows one most immediate areas where effects will become evident. One possible outcome Brexit situation WTO tariffs apply merchandise between and EU. By examining detailed all other EU members, matching over 5200 products tariff applicable external this paper shows that such an would result in significantly different impacts across countries. Our estimates exposure at country level show extremely...

Firms very rarely cut nominal wages, even in the face of considerable negative economic shocks. The authors this article use a unique survey 14 European countries to ask firms directly about incidence wage cuts and assess relevance range potential reasons for why avoid cutting wages. They examine how firm characteristics collective bargaining institutions affect each common explanations infrequency cuts. Concerns retention productive staff lowering morale effort were reported as key downward...

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It has been well established that the wages of individual workers react little, especially downwards, to shocks hit their employer. This paper presents new evidence from a unique survey firms across Europe on prevalence downward wage rigidity in both real and nominal terms. We analyse which firm-level institutional factors are associated with rigidity. Our results indicate it is related workforce composition at establishment level manner consistent theoretical models (e.g. efficiency theory,...

Small and medium enterprises have been shown to rely mainly on banks for funding and, unlike larger firms, rarely direct access capital markets. This article looks at the extent which SMEs avail of a wider range options how their use differs across firms countries. Across all countries, we find that are currently using two or three sources finance fund operations had previous experience other types funding. There some noticeable differences countries with peripheral economies generally being...

Firms have multiple options at the time of adjusting their wage bills. However, previous literature has mainly focused on base wages. We broaden analysis beyond downward rigidity in wages by investigating use other margins labour cost adjustment firm level. Using data from a unique survey, we find that firms make frequent other, more flexible, components compensation to adjust labour. Changes bonuses and non-pay benefits are some potential reduce costs. also show how chosen affected worker...

This article examines the effects of corporate tax on these location decisions newly established multinational subsidiaries across 26 European countries over an 8-year period. We contribute to existing literature by examining a non-linear response firm changes in rate. also show that there are large variations sensitivity rates sectors and size groups. In particular, financial sector firms more than twice as sensitive corporation relative other sectors. Our baseline result is finding 1%...

It has been well established that the wages of individual workers react little, especially downwards, to shocks hit their employer. This paper presents new evidence from a unique survey firms across Europe on prevalence downward wage rigidity in both real and nominal terms. We analyse which firm-level institutional factors are associated with rigidity. Our results indicate it is related workforce composition at establishment level manner consistent theoretical models (e.g. efficiency theory,...

Abstract The empirical finding that exporting firms are more productive on average than non‐exporters has provoked a large theoretical literature based models such as Melitz ( ), where likely to overcome costs associated with trade. This paper investigates how closely the productivity heterogeneity framework fits data from firm‐level survey includes information export destinations and firm characteristics productivity. We find high degree of unpredictable idiosyncratic participation in...

Cross-country divergence in credit availability to Small and Medium Enterprises (SMEs) has been a salient feature of the recent Euro Area economic crisis. This paper uses firm level macroeconomic data identify heterogeneity SME conditions within since 2009. By taking account differences quality risk-free interest rate, we use remaining residual supply ‘credit crunch’. We investigate whether such as real economy growth private sector leverage can explain these crunches, finding that banks...