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While gold objects have existed for thousands of years, gold's role in diversified portfolios is not well understood. We critically examine popular stories such as 'gold is an inflation hedge'. We show that gold may be an effective hedge if the investment horizon is measured in centuries. Over...
Persistent link: https://www.econbiz.de/10012459955
In this paper, we estimate the impact of increasing costs on foreign producers following a withdrawal of the United …. First, we assume that the United Kingdom unilaterally imposes tighter restrictions on foreign direct investment (FDI) from … fall in foreign investment and production by U.K. firms. The United Kingdom increases international lending, which finances …
Persistent link: https://www.econbiz.de/10012455464
Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms remain unknown. We investigate the underlying channels of the euro's effect on financial integration using data on bilateral banking linkages among twenty industrial countries in the...
Persistent link: https://www.econbiz.de/10012463615
While economic theory highlights the usefulness of flexible exchange rates in promoting adjustment in international relative prices, flexible exchange rates also can be a source of destabilizing shocks. We find that when countries joining the euro currency union abandoned their national exchange...
Persistent link: https://www.econbiz.de/10012456694
Do bond investors demand credit quality or liquidity? The answer is both, but at different times and for different reasons. Using data on the Euro-area government bond market, which features a unique negative correlation between credit quality and liquidity across countries, we show that the...
Persistent link: https://www.econbiz.de/10012466289
We estimate and attempt to explain the evolution of the taxes paid by U.S. multinationals on their foreign profits … after-tax returns. Foreign taxes fell abruptly after the first Gulf War. In sectors other than oil, the effective foreign … havens. The low foreign taxes paid by U.S. multinationals can explain half of the U.S. cross-border return differential …
Persistent link: https://www.econbiz.de/10012480636
The U.S. Bureau of Economic Analysis (BEA) estimates the return on investments of foreign subsidiaries of U ….S. multinational companies over the period 1982--2006 averaged 9.4 percent annually after taxes; U.S. subsidiaries of foreign … foreign and domestic locations. Used abroad, it generates profits for foreign subsidiaries with no foreign direct investment …
Persistent link: https://www.econbiz.de/10012464663
The government contracts with a foreign firm to extract a natural resource that requires an upfront investment and …
Persistent link: https://www.econbiz.de/10012464906
Japanese firms that were acquired by foreign firms improves after the acquisition. In our previous study for the Japanese …) and profit rates than M&As by domestic firms. However, it may argued that firms acquired by foreign firms showed better … performance simply because foreign investors acquired more promising Japanese firms than Japanese investors did. In order to …
Persistent link: https://www.econbiz.de/10012466243
54 U.S. research intensive universities. First, we estimate the career preferences of foreign and U.S. STEM students for … more standard Likert measures of preferences for different careers. We find that foreign students are generally more … to choose between two postdoc job offers, where one offer is in the U.S. and one is abroad. We find that foreign students …
Persistent link: https://www.econbiz.de/10012452883