We analyze the transmission of bank-specific liquidity shocks triggered by a credit rating downgrade through the lending channel. Using bank-level data for US Bank Holding Companies, we find that a credit rating downgrade is associated with an immediate and persistent decline in access to...

This paper explores the influence of Taylor rule deviations on the Deutschmark-Dollar and Yen-Dollar real exchange rate. Taylor rule deviations occur if the short term interest rate persistently deviates from an interest rate path consistent with the Taylor rule. It uses the behavior rational...

This paper investigates the sources of exchange rate fluctuations when monetary policy follows a Taylor rule interest rate reaction function. We first present a simple dynamic exchange rate model with Taylor rule fundamentals which is triangular in the long-run impacts of shocks to the output...

We examine the international transmission of liquidity shocks from multinational bank holding companies to their subsidiaries during the financial crisis of 2008. Our results demonstrate that a subsidiary's reduction in lending is strongly related to its parent bank's lending via the interbank...

We study patterns of FDI in a multi-country world economy. First, we present evidence for a broad sample of countries that firms direct FDI disproportionately to markets with income levels similar to their home market. Then we develop a model featuring non-homothetic preferences for quality and...

This article examines the theoretical bases of both international management and the internalisation approach to international business. Similarities include: attention to the 'make or buy' decision, interaction between locational and organisational variables and attention to internal control...

The integration of world capital markets carries important implications for the design and impact of tax policies. This paper evaluates research findings on international taxation, drawing attention to connections and inconsistencies between theoretical and empirical observations. Diamond and...

This paper examines the social relationships in and around a German subsidiary in Hungary during the first 15 years of Hungarian transition to a market economy. It draws on a recent conceptual framework that sees multinational corporations as transnational social spaces, in which transnational...

This article investigates the catalyst effect of industrial cluster formation on innovation propensity using as a basis small and medium enterprises (SMEs) located in two regions of transformation and structural change: Brandenburg in Eastern Germany (the former German Democratic Republic) and...