Nahum D. Melumad

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We investigate the persistence of year-over-year changes in the components of operating profit. Using industry-level data, we find that changes in the volume of output exhibit a more persistent effect on profitability than changes in output prices, labor cost, labor productivity, intermediate input cost, and intermediate input productivity. Furthermore, we(More)
This paper studies the effect of real options on organizational design. A timing option, where capacity can be filled now or later, arises because managers are limited in the number of projects they can implement. Taking on a good project now means that a great project may have to be forgone in the future. A goal incongruence arises because managers value(More)
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