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Price vs. Quantity Competition in a Vertically Related Market Revisited

Basak, Debasmita - 2017

In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to Bertrand competition if the upstream firm subsidises...

Persistent link: https://www.econbiz.de/10012965632

Firm-to-Firm Relationships and Price Rigidity Theory and Evidence

Heise, Sebastian - 2017

Economists have long suspected that firm-to-firm relationships might increase price rigidity due to the use of explicit or implicit fixed-price contracts. Using transaction-level import data from the U.S. Census, I study the responsiveness of prices to exchange rate changes and show that prices...

Persistent link: https://www.econbiz.de/10012965634

Multilateral Loans and Interest Rates : Further Evidence on the Seniority Conundrum

Steinkamp, Sven - 2017

During Europe's sovereign-debt crisis, interest rate spreads have been highly correlated with the share of multilateral loans that were considered senior to private markets. As both variables are potentially endogenous, we follow two different approaches to analyze the direction of causality....

Persistent link: https://www.econbiz.de/10012965635

On the Efficiency of Destination and Origin Commodity Taxation in the Presence of Consumption Generated Cross-Border Pollution

Antoniou, Fabio - 2017

We combine consumption generated cross-border pollution and public pollution abatement in a theoretical framework to examine the efficiency of the destination and origin principles of commodity taxation. The key result of our study is that with public pollution abatement, the non-cooperative...

Persistent link: https://www.econbiz.de/10012965639

When Carry Goes Bad : The Magnitude, Causes, and Duration of Currency Carry Unwinds

Melvin, Michael - 2017

We analyze the worst currency carry loss episodes in recent decades, including causes, attribution by currency, timing, and the duration of carry drawdowns. To explore the determinants of the length of carry losses, a model of carry drawdown duration is estimated. We find evidence that drawdown...

Persistent link: https://www.econbiz.de/10012965697

Factor Income Distribution and Endogenous Economic Growth - When Piketty Meets Romer

Irmen, Andreas - 2017

We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …, both the economy's savings rate and its growth rate are endogenous variables whereas in Piketty's theory they are both …

Persistent link: https://www.econbiz.de/10012965706

Should Income Inequality Be Praised? Multiple Public Goods Provision, Income Distribution and Social Welfare

Itaya, Jun-ichi - 2017

We investigate how income inequality affects social welfare in a model of voluntary contributions to multiple pure public goods. Itaya, de Meza, and Myles (1997) show that the maximization of social welfare precludes income equality in a single pure public good model. In contrast, we show that...

Persistent link: https://www.econbiz.de/10012965708

Behavioral Constraints on Pricing : Experimental Evidence on Price Discrimination and Customer Antagonism

Leibbrandt, Andreas - 2017

In this study, we investigate behavioral constraints on pricing by using a novel laboratory experiment in which actual consumption goods are traded. We test different models and provide several insights into pricing and reactions to price discrimination. First, we identify the extent to which...

Persistent link: https://www.econbiz.de/10012965710

Public Pensions in a Multi-Period Mirrleesian Income Tax Model

Bastani, Spencer - 2017

Using an OLG model with skill uncertainty and private savings, we investigate whether an optimally designed set of public pension transfers can usefully supplement a nonlinear labor income tax as a welfare-enhancing policy instrument. We consider a Mirrleesian setting where agents' skills are...

Persistent link: https://www.econbiz.de/10012965719

Taxation in Digital Media Markets

Kind, Hans Jarle - 2017

Digital media goods and digital media platforms exhibit cost structures and network effects that imply that price and quantity effects of consumption taxes are qualitatively different compared to what we typically find for physical goods. For instance, in most European countries and US states,...

Persistent link: https://www.econbiz.de/10012965929