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Stahl, Konrad O.; Strausz, Roland - CESifo - 2011

Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer …-induced certification acts as an inspection device, seller-induced certification as a signalling device. Seller-induced certification … maximizes the certifier’s profit and social welfare. This suggests the general principle that certification is, and should be …

Persistent link: https://www.econbiz.de/10008853867

The Effects of Taxation on the Location Decision of Multinational Firms: M&A vs. Greenfield Investments

Hebous, Shafik; Ruf, Martin; Weichenrieder, Alfons - CESifo - 2010

In this study, we estimate the impacts of differences in international tax rates on the probability of choosing a location for an affiliate of a multinational firm. In particular, we distinguish between the tax sensitivity of Greenfield and M&A investments. Based on a novel firm-level dataset on...

Persistent link: https://www.econbiz.de/10008572530

Public and Private Learning from Prices, Strategic Substitutability and Complementarity, and Equilibrium Multiplicity

Manzano, Carolina; Vives, Xavier - CESifo - 2010

We study a general static noisy rational expectations model, where investors have private information about asset payoffs, with common and private components, and about their own exposure to an aggregate risk factor, and derive conditions for existence and uniqueness (or multiplicity) of...

Persistent link: https://www.econbiz.de/10008511613

A Game-Theoretic Foundation for the Wilson Equilibrium in Competitive Insurance Markets with Adverse Selection

Mimra, Wanda; Wambach, Achim - CESifo - 2011

We extend the seminal Rothschild and Stiglitz (1976) model on competitive insurance markets with asymmetric information in the spirit of Wilson (1977)’s ‘anticipatory equilibrium’ by introducing an additional stage in which initial contracts can be withdrawn after observation of...

Persistent link: https://www.econbiz.de/10008914286

What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods

Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - CESifo - 2011

Credence goods are characterized by informational asymmetries between sellers and consumers that invite fraudulent behavior by sellers. This paper presents the results of a natural field experiment on taxi rides in Athens, Greece, set up to measure different types of fraud and to examine the...

Persistent link: https://www.econbiz.de/10009020798

Volunteering and the Strategic Value of Ignorance

Morath, Florian - CESifo - 2011

Private provision of public goods often takes place as a war of attrition: individuals wait until someone else volunteers and provides the good. After a certain time period, however, one individual may be randomly selected. If the individuals are uncertain about their cost of provision, but can...

Persistent link: https://www.econbiz.de/10009021240

Endogenous Public Information and Welfare

Vives, Xavier - CESifo - 2011

This paper performs a welfare analysis of economies with private information when public information is endogenously generated and agents can condition on noisy public statistics in the rational expectations tradition. Equilibrium is not (restricted) efficient even when feasible allocations...

Persistent link: https://www.econbiz.de/10009144884

Home Bank Intermediation of Foreign Direct Investment

Poelhekke, Steven - CESifo - 2011

This paper investigates the benefits of banks’ direct investment in foreign subsidiaries and branches for non-financial multinationals. The paper builds on the literature on international banks which has primarily focused on the implications for host countries, rather than for its...

Persistent link: https://www.econbiz.de/10009147744

Corporate Taxation and Financial Strategies Under Asymmetric Information

Cohen, Francesco; Fedele, Alessandro; Panteghini, Paolo - CESifo - 2014

In this article we study the corporate tax effects on credit market equilibria. In particular, we develop a model that accounts for five pieces of evidence: i) the existence of a tax incentive to borrow, ii) the negative relationship between leverage and profitability, iii) the existence of...

Persistent link: https://www.econbiz.de/10010764291

Income Tax Buyouts and Income Tax Evasion

Goerke, Laszlo - CESifo - 2014

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected...

Persistent link: https://www.econbiz.de/10010739344