Large and sustained differences in marginal products of capital (MPKs) across countries are sharply at odds with the … substantially affected by adjustment costs in the accumulation of capital. With the proper technology and a plausible … parameterization of adjustment costs, the MPK in poor countries is much higher than the MPK in rich countries. Why capital flows do not …

model with heterogeneous investors and imperfect capital mobility. Our model yields a gravity equation for bilateral foreign … significant home bias, higher rates of return on capital in emerging markets, as well as "upstream" capital flows. In our … benchmark calibration, we estimate that the capital misallocation induced by these barriers reduces World GDP by 7%, compared to …

introduce, estimate and validate new country-level measures of inward and outward Revealed Capital Account Openness (RKO … the pace of capital account liberalization, with richer countries liberalizing much faster than poorer ones. We call this … capital allocation, a 2.8% lower world GDP, a 12% rise in the cross-country dispersion of GDP per capita, lower wages in …

We scrutinize the role of capital flows for competitiveness in seven euro-area countries in the context of real … international capital markets. Capital flows are assumed to be able to invert the traditional direction of transmission of real wage … estimations for the period from 1995 to 2013 show evidence in favour of capital inflow-driven real wage increases in excess of …

the importance of the actual tax rate. For Japan, which charges a higher tax rate on corporate profits than Germany, we … imposes a lower tax rate than Germany, the switch to territorial taxation is not found to exert any significant effects on …