We identify negative spillovers exerted by large, successful manufacturing plants on other local production facilities in China. A short-lived alliance between the U.S.S.R. and China led to the construction of 150 "Million-Rouble plants" in the 1950s. Our identification strategy exploits the...

We present a dynamic two-country model in which military spending, geopolitical risk, and government bond prices are jointly determined. The model is consistent with three empirical facts: hegemons have a funding advantage, this advantage rises with geopolitical tensions, and war losers suffer...

In der aktuellen Debatte um eine grundlegende Reform des Wirtschaftsstandorts Deutschland stehen Ansätze zur Reduzierung der Lohnkostenbelastung der Unternehmen im Vordergrund. Diskutiert werden insbesondere der Umbau des Sozialversicherungssystems und die Deregulierung des Arbeitsmarktes....