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Keuschnigg, Christian; Ribi, Evelyn - CESifo - 2010

In the absence of financing frictions, profit taxes reduce investment by their effect on the user cost of capital. With finance constraints due to moral hazard, investment becomes sensitive to cash-flow and own equity of firms. We propose a corporate finance model of investment and derive three...

Persistent link: https://www.econbiz.de/10008572543

Innovation, Trade, and Finance

Egger, Peter; Keuschnigg, Christian - CESifo - 2011

comparative advantage in producing innovative goods. We illustrate how protection, R&D subsidies, and financial sector development …

Persistent link: https://www.econbiz.de/10009228619

Comparative Advantage and Skill-Specific Unemployment

Larch, Mario; Lechthaler, Wolfgang - CESifo - 2009

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...

Persistent link: https://www.econbiz.de/10005013939

Stock Market Returns, Corporate Governance and Capital Market Equilibrium

Parigi, Bruno Maria; Pelizzon, Loriana; Thadden, … - CESifo - 2013

This paper proposes a theoretical model that incorporates corporate governance into the basic CAPM, where corporate governance affects the disutility of managerial effort and the possibility of managers to divert company resources. It shows that corporate governance affects firms’ stock...

Persistent link: https://www.econbiz.de/10010720638

Firm Performance and Trade with Low-Income Countries: Evidence from China

Schmerer, Hans-Jörg; Wang, Luhang - CESifo - 2014

Do firms in developing countries shift trade towards developed economies as a result of high economic growth? The matched customs-manufacturing firm data used in this study confront this hypothesized link with empirical evidence. Our analysis reveals a rising low-income country trade share...

Persistent link: https://www.econbiz.de/10010888447

Politicians: Be Killed or Survive

Frey, Bruno S.; Torgler, Benno - CESifo - 2008

In the course of history, a large number of politicians have been assassinated. Rational choice hypotheses are developed and tested using panel data covering more than 100 countries over a period of 20 years. Several strategies, in addition to security measures, are shown to significantly reduce...

Persistent link: https://www.econbiz.de/10005406072

Tariffs Passing Through Retailers: Do Tariffs Actually Protect Domestic Manufacturers?

Cole, Matthew T.; Eckel, Carsten - CESifo - 2014

Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy are based on theoretical models that assume foreign manufacturers sell directly to consumers. However, recent empirical evidence suggests that wholesalers and retailers play an...

Persistent link: https://www.econbiz.de/10010877688

Effects of Unilateral Climate Policy on Terms of Trade, Capital Accumulation, and Welfare in a World Economy

Farmer, Karl; Bednar-Friedl, Birgit; Rainer, Andreas - CESifo - 2008

We present a two-good, two-country overlapping generations model where emissions arise from production and each country has a domestic emission permit system. When one country unilaterally reduces her cap on emissions, her output available for domestic and foreign consumption diminishes more...

Persistent link: https://www.econbiz.de/10005765695

Substitutability and Protectionism: Latin America’s Trade Policy and Imports from China and India

Facchini, Giovanni; Olarreaga, Marcelo; Silva, Peri A.; … - CESifo - 2007

world markets. To explain higher protection in sectors where a large share is imported from these countries, we extend the … ‘protection for sale’ model to allow for different degrees of substitutability between domestically produced and imported … varieties. The extension suggests that higher levels of protection towards Chinese goods can be explained by high …

Persistent link: https://www.econbiz.de/10005765925

Trade Agreements

Kowalczyk, Carsten; Riezman, Raymond - CESifo - 2009

This paper reviews the most significant recent developments in the theory of trade agreements. The paper offers an integrated approach to evaluating trade agreements, and uses the approach to present results on preferential and multilateral trade agreements. The paper identifies also several...

Persistent link: https://www.econbiz.de/10004979401