With internationally mobile labour and the abolition of national border controls, the individual may not only have private information about his skill level (adverse selection), but also about the length of time he resides and works in the home country (moral hazard) and about his foreign...

Two jurisdictions compete to capture the rents of a large multinational enterprise (MNE) which invests locally and which is partly owned by local investors. The MNE contributes to local welfare by tax payments and dividends and it has private information about the efficiency of the operations in...

Through a learning-by-doing process, a firm's efficiency depends positively on the extent of its previous business activity. From a dynamic incentives perspective, therefore, efficiency is endogenous. In addition, the efficiency of the firm is likely to be subject to private information. The...