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We quantify the real implications of trade-offs between firm information disclosure and long-term investment efficiency. We estimate a dynamic equilibrium model in which firm managers confront realistic incentives to misreport earnings and distort their real investment choices. The model implies a socially optimal level of disclosure regulation that exceeds the estimated value. Counterfactual analysis reveals that eliminating earnings misreporting completely through disclosure regulation incentivizes managers to distort real investment. Lower earnings informativeness raises the cost of capital, which results in a 5.7 |$\%$| drop in average firm value, but more modest effects on social welfare and aggregate growth. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Uncertainty rises in recessions and falls in booms. But what is the causal relationship? We construct cross-country panel data on stock market returns to proxy for first- and second-moment shocks and instrument these with natural disasters, terrorist attacks, and political shocks. Our IV regression results reveal a robust negative short-term impact of second moments (uncertainty) on growth. Employing multiple vector autoregression estimation approaches, relying on a range of identifying assumptions, also reveals a negative impact of uncertainty on growth. Finally, we show that these results are reproducible in a conventional micro–macro business cycle model with time-varying uncertainty. [ABSTRACT FROM AUTHOR]

Abstract. We experimentally test how effort responds to wages--randomly assigned to accrue to individuals or to a charity--in the presence of expectations-based reference points or targets. When individuals earn money [...]

After a recent increase in Chinese import competition, European firms increased innovation. We present and rationalise these patterns using 'trapped factors' at the micro level within a stylised equilibrium model of product-cycle trade and growth. Trade integration of the magnitude observed between the OECD and low-wage nations as a whole can considerably increase the long-run growth rate and welfare. In the short run exposed firms devote trapped factors to increased innovation, leading both to increased innovation at these individual firms as well as to a small amount of extra transitional growth overall. China accounts for half of the dynamic trade gains. [ABSTRACT FROM AUTHOR]

The article presents research on the role of Dbl3 in Cdc42 signaling at the apical margin for the regulation of morphogenesis, junction position, and apical differentiation. Topics include the study of junctions along the apical-lateral border of epithelial cells; the use of a small interfering RNA screen to identify Dbl3 as a guanine nucleotide exchange factor that is recruited by exrin; and the Cdc42 effector complex Par6-atypical protein kinase c (aPKC).