Long-term and short-term labor contracts versus long-term and short-term debt financial contracts

摘要

This paper has three objectives: First to analyze the interaction between the basic internalcontracts that shape the firm (labor and financial contracts). In particular we show how theirtemporal dimensions are related. The linkage between firm-s internal contracts and the projectchoice (short-term or long-term) is the second objective of our study. Finally, we check howsensitive are the type of financial intermediary (banks or markets) to the relations previouslystudied. These results allow us to rationalize several facts that characterize the US-UK financialsystem and the German-Japanese ones.As a direct implication of our theoretical model, sorne empirical tests are proposed which areparticularly relevant to describe sorne features of the current Spanish economy.