even for risk neutral multinationals, as their profit function is non-linear due to price and productivity effects. For … of productivity shocks in an emerging market producing the intermediate inputs reduces the multinationals' expected … in each country to productivity shocks, channeling the average employment from the more to the less volatile location …

even for risk neutral multinationals, as their profit function is non-linear due to price and productivity effects. For … of productivity shocks in an emerging market producing the intermediate inputs reduces the multinationals' expected … in each country to productivity shocks, channeling the average employment from the more to the less volatile location …

(such as law enforcement), versus the stock of tangible public infrastructure. Although the flow of public expenditure … raises productivity, the government should not borrow to finance it as the resulting increase in public debt would lower … should be financed only from current revenue. With investment in the stock of public infrastructure, public sector borrowing …