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In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...
Persistent link: https://www.econbiz.de/10003120614
The standard tax theory result that investment should not be distorted is based on the assumption that profits are … policy response to increasing firm mobility may be taxation, subsidization or non-distortion of investment depending on …
Persistent link: https://www.econbiz.de/10003203523
the effects of migration on the accumulation of both knowledge and human capital, by invoking endogenous growth theory …
Persistent link: https://www.econbiz.de/10009663906
We quantify the impact of barriers to international investment, using a novel multi-country dynamic general equilibrium … asset positions. We estimate this gravity equation using recently developed foreign investment data that have been restated … to account for offshore investment and financing vehicles. We show that a parsimonious implementation of the model with …
Persistent link: https://www.econbiz.de/10012514947
This paper studies the marginal product of private capital (MPK) with new data and a new framework to obtain a better understanding of international capital allocations and the Lucas Paradox (LP). Our point of departure is three influential studies of MPK's and, based on the most recently...
Persistent link: https://www.econbiz.de/10012057304
Persistent link: https://www.econbiz.de/10003624024
Persistent link: https://www.econbiz.de/10003599469
utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake - this is …
Persistent link: https://www.econbiz.de/10010515458
Persistent link: https://www.econbiz.de/10001876718
human and nonhuman capital investment ; power law of learning …
Persistent link: https://www.econbiz.de/10003688797