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We evaluate the 2017 Tax Cuts and Jobs Act. Combining reduced-form estimates from tax data with a global investment model, we estimate responses, identify parameters, and conduct counterfactuals. Domestic investment of firms with the mean tax change increases 20% versus a no-change baseline. Due...
Persistent link: https://www.econbiz.de/10014512034
This essay highlights the effects of radical transformations in the liberal characteristics of the regimes on foreign direct investors. To focus on the common patterns in the effects on foreign direct investment, of liberal vs. illiberal regime change, the essay spotlights the tale of two...
Persistent link: https://www.econbiz.de/10014576643
causal interpretation. A model of technology transfer rationalizes these effects and also correctly predicts (i) falls in …
Persistent link: https://www.econbiz.de/10014250146
We construct a dynamic general equilibrium model of foreign direct investment (FDI) and foreign technology adoption …, incorporating adoption barriers, international technology spillover, and relative price advantages. A higher FDI conversion efficacy …, a lower adoption barrier, or a stronger international technology spillover, together with a lower relative price of FDI …
Persistent link: https://www.econbiz.de/10014250176
Climate-related risks have increased in recent decades, both in terms of the frequency of extreme weather events (physical risk) and implementation of climate-change mitigation policies (transition risk). This paper explores whether multinational firms react to such risks by altering their...
Persistent link: https://www.econbiz.de/10013388808
We introduce a general quantifiable framework to study the location decisions of multinational firms. In the model, firms choose in which locations to pay the fixed costs of setting up production, taking into account potential complementarities among production locations. The firm's location...
Persistent link: https://www.econbiz.de/10014437008
This paper defines risk-on risk-off (RORO), an elusive terminology in pervasive use, as the variation in global investor risk aversion. Our high-frequency RORO index captures time-varying investor risk appetite across multiple dimensions: advanced economy credit risk, equity market volatility,...
Persistent link: https://www.econbiz.de/10014437038
We estimate the effects of technology investments on the demand for skilled workers using longitudinally integrated … unobservable components within each business for each year from 1992 to 1997. We measure technology using variables from the Annual … between advanced technology and skill in a cross-sectional analysis of businesses in both sectors. The more comprehensive …
Persistent link: https://www.econbiz.de/10012465611
Capital equipment - such as computers and industrial machinery - embodies skill-biased technology, in the sense that it … skill-biased technology. In this paper we develop a tractable quantitative model of international trade in capital goods to …
Persistent link: https://www.econbiz.de/10012461199
Recent research concludes that wage returns to cognitive skills have declined in the U.S. We reassess this finding. Using decomposition methods, we document the pivotal role played by dynamic shifts in the distributions of pre-labor market cognitive skills. Our findings show these shifts explain...
Persistent link: https://www.econbiz.de/10014512083