Showing 1 - 10 of 603
We study how a preferential trade agreement (PTA) affects international sourcing decisions, aggregate productivity and … from the investment. This raises aggregate productivity. On the other hand, the agreement yields sourcing diversion. More … tariff tips it toward harmful sourcing diversion. A PTA also affects the structure of vertical chains in the economy. As …
Persistent link: https://www.econbiz.de/10011932077
those suppliers it does affect, the rule increases investment, but it also induces excessive sourcing (for given investment …
Persistent link: https://www.econbiz.de/10013427706
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10010277412
Firms are under increasing pressure to meet stakeholders' demand for Corporate Social Responsibility (CSR) along their global value chains. We study the incentives for and investments in CSR at different stages of the production process. We analyze a model of sequential production with...
Persistent link: https://www.econbiz.de/10013177532
Seminal theories of the firm posit that firm ownership is allocated to minimize contractual inefficiencies. Yet, it remains unclear how much the optimal ownership choice affects firm performance in practice. This paper provides a first quantification of the gains from optimal ownership within...
Persistent link: https://www.econbiz.de/10014377525
This theoretical paper explores the impact of gender diversity on team production. The key assumption is that men derive utility from signaling high ability to female colleagues. The analysis shows that some gender diversity maximizes expected team production if (i) men and women have similar...
Persistent link: https://www.econbiz.de/10010500415
In this paper, we consider a dynamic search-and-matching problem of a firm with its intermediate input supplier. In our model, a headquarter currently matched with a supplier, has an interest to find and collaborate with a more efficient partner. However, supplier switching through search and...
Persistent link: https://www.econbiz.de/10011777613
Over the last decades, the internationalization of the value chain has allowed firms to exploit cross-country differences in environmental and labor regulation (and enforcement) in ways that have led to a large number of NGO campaigns and consumer boycotts criticizing ‘unethical’ practices....
Persistent link: https://www.econbiz.de/10011815815
Recent studies indicate that firms often outsource standard and simple tasks, while keeping complex and important inputs inside their boundaries. This observation is difficult to reconcile with the property rights approach of the firm, which suggests that important components should be...
Persistent link: https://www.econbiz.de/10010282060
Seminal theories of the firm posit that firm ownership is allocated to minimize contractual inefficiencies. Yet, it remains unclear how much the optimal ownership choice affects firm performance in practice. This paper provides a first quantification of the gains from optimal ownership within...
Persistent link: https://www.econbiz.de/10014346399