Comparing domestic- and foreign-owned firms in Germany, this paper finds that foreign-owned firms are more likely to focus on short-term profit. This influence is particularly strong if the local managers of the German subsidiary are not sent from the foreign parent company. Moreover, the...

This paper presents an analysis of the Five Economists' plan for a "wage-tax trade-off", combining an EITC program with a freeze on award wage increases, as a policy package for reducing unemployment. The study identifies the changes in effective tax rates implied by the EITC program and shows...

Do knowledge externalities from FDI foster local innovative performance? Employing manufacturing data for the period 2001–2006 this paper investigates the impact of inward FDI on the generation of innovation. Adopting a Knowledge Production Function approach (KPF), we find that in the case of...