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IV estimates are typically larger than OLS estimates in econometric analysis because IV estimation corrects for endogeneity bias by using instrumental variables to isolate the causal relationship between the independent and dependent variables. This correction often results in larger estimates compared to OLS, which may be biased due to endogeneity issues.
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What is External context for strategy and firm performance?
In order to understand the threats and opportunities facing an organization, you need a thorough understanding of its external context, including not only its industry, but the larger environment in which it operates. The proper analysis of the external context, together with the firm-level analysis you learned in Chapter 3 (e.g., VRINE, value-chain), allow you to complete a rigorous analysis of a firm and its options. You could say that with these tools you can now perform a thorough and systematic (rather than intuitive) SWOT analysis; that is, an assessment of a firm's strengths, weaknesses, opportunities, and threats.
Why are DVDs sold in larger packages than CDs although the discs are the same size?
Typically, they aren't. However, the DVD cases used by the entertainment industry are simply a choice they made, probably based on the desire to include booklets, have larger art, etc.
How much does a dairy farmer make on milk sold?
A dairy farmer makes very little on milk sold, if he sells it to a larger company. Typically the farmer will get about 10% of the retail value of the milk.
Do all banks have vaults for storing valuables and cash?
Not all banks have vaults for storing valuables and cash. Some smaller banks may not have vaults, while larger banks typically have secure vaults for storing valuables and cash.
What is maximum prosperity?
It is larger dividends for business owners and larger wages for employees.
