A reduced form hazard rate model of merger timing, estimated using a uniquely constructed 1990–2004 UK panel data set, shows clear correlations between the observed wave-like pattern of merger activity and both exogenous and endogenous drivers with firm characteristics acting as intermediaries.

This paper analyses how innovations in imported final goods impact via terms of trade effects upon welfare growth in the domestic economy. It is shown that the impacts, although differing across countries, are quantitatively significant and worthy of further consideration.