-
作者：Fatás, A; Mihov, I
作者单位：INSEAD Business School
摘要：This paper documents a strong negative correlation between government size and output volatility both for the OECD countries and across US states. This correlation is robust to the inclusion of a large set of controls as well as to alternative methods of detrending and estimation. In the international sample, a one percentage point increase in government spending relative to GDP reduces output volatility by eight basis points. Whereas in the US states the reduction in volatility is significant...
-
作者：Feenstra, RC
作者单位：University of California System; University of California Davis; National Bureau of Economic Research
-
作者：Markusen, JR
作者单位：University of Colorado System; University of Colorado Boulder
摘要：The policy debate between multinational firms favoring strong contract law, and host-country governments who often oppose such protection motivates the paper. Local agents (managers) learn the multinational's technology and can defect to start a rival firm. Contract enforcement, including binding the multinational itself, makes the multinational better off. Outcomes for the host country are more complex, depending on mode switches induced by enforcement. If enforcement induces the multinationa...
-
作者：Popper, H; Montgomery, JD
作者单位：Santa Clara University
摘要：This paper develops a model of information sharing among heterogeneously informed agents and it uses the model to examine a rationale for intervention in the foreign exchange market. The model shows that in a partially revealing rational expectations equilibrium, some agents can gain by sharing among themselves private information about transitory exchange rate disturbances. In this setting, a central bank can affect the exchange rate by aggregating and disseminating agents' information. The p...
-
作者：Zhao, LX
作者单位：Hokkaido University
摘要：This paper offers an explanation for multinationals that are both horizontally and vertically related. Specifically, when labor is unionized, the conventional incentives for merger may disappear in industries of successive (or bilateral) monopoly, due to 'double marginalization', which limits the amount of surplus that can be bargained between labor and the firms. We show that vertical integration raises both union employment and the negotiated wage, but may reduce total industry profits. As s...
-
作者：van de Klundert, T; Smulders, S
作者单位：Tilburg University; Tilburg University
摘要：History shows that rich countries may lose their productivity advantage by changing to a rentier economy with large investments abroad. In our two-country two-sector model with firm-specific knowledge and perfect international capital markets, the initially most productive country is being overtaken by the initially backward country. The two countries share the same structural parameters but have different initial knowledge stocks. The larger the initial productivity gap is, the larger is the ...
-
作者：Baldwin, RE; Ottaviano, GIP
作者单位：Bocconi University
摘要：Global patterns of FDI and trade are remarkably similar, yet mainstay theory has them as substitutes. We posit a model where multiproduct, final-goods firms simultaneously engage in intraindustry FDI and intraindustry trade. The logic behind this two-way FDI is analogous to that of two-way trade in the Brander-Krugman reciprocal-dumping model. Namely, multiproduct firms use tmde costs to reduce inter-variety competition by placing production of some varieties abroad. Since the varieties are di...
-
作者：Bergin, PR; Feenstra, RC
作者单位：University of California System; University of California Davis; University of California System; University of California Davis; National Bureau of Economic Research
摘要：This paper explores an explanation for the high degree of persistence and volatility observed in real exchange rate data. In particular, it considers a class of preferences that are translogin Form, which exhibit the property that the elasticity of demand is not constant. This property is shown to he important for generating pricing-to-market behavior in price-setting firms and for helping staggered contracts to generate endogenous persistence. The paper finds that translog preferences generat...
-
作者：Yang, GF; Maskus, KE
作者单位：University of Colorado System; University of Colorado Boulder
摘要：We develop a dynamic general-equilibrium model of the product cycle to study the effects of stronger intellectual property rights (IPRs) in the South on the incentives of firms in the North to innovate and to License advanced technologies. Innovation and licensing are random processes requiring resources. Stronger IPRs increase the licensor's share of rents and reduce the costs of licensing contracts. Thus, the returns to both licensing and innovation would rise while additional resources woul...
-
作者：Gandal, N; Shy, O
作者单位：Tel Aviv University; University of Haifa
摘要：We analyze governments' incentives to recognize foreign standards when there are potentially both network effects and conversion costs. When government policy is limited to either recognizing all foreign standards or not recognizing any foreign standard, recognition is always the outcome. We then consider a setting in which countries can form standardization unions. When conversion costs are relatively large, two countries can increase their welfare by forming a standardization union that does...
