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This paper evaluates a form of contingent capital for financial institutions that converts from debt to equity if two conditions are met: the firm's stock price is at or below a trigger value and the value of a financial institutions index is also at or below a trigger value.
The institutions index also moved slightly against the urban unskilled.
And, finally, there were modest declines in the institutions index for educated relative to uneducated workers.
Finally, in all specifications, the coefficient on the institutions index ∆I ist is not significantly different from zero.13.
But when only about a third of institutions' index and only 10%to15%5% of individuals do, I'm not going to worry about that.
Based on ρ iskt estimated from wage regressions, the institutions index (∆I) for group i is the change in the entire wage-premium term or.
Similar(54)
Each institution index is normalized.
Each institution index is computed as the deviation from the mean over standard error.
Each institution index is normalized by mean and standard deviation so that the effects of each institution on unemployment rates are comparable.
The coefficients on the interaction terms between the labor-market institution index and the overall unemployment rate change identify how the effects of overall labor-market shock on age-specific unemployment rates depend on labor-market institutions, such as firing restrictions, unemployment insurance, and wage-setting institutions.
Endogenous variables: Δ(Unemployment rate)all ages,t and its interactions with labor market institution indexes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com