Showing 1 - 10 of 14
This paper discusses the firm-level determinants of international hotels' foreign markets entry choices, contrasting acquisition with management and franchise contracts, based on a resource-dependency perspective and appropriability theory. It points out that brand equity, relatedness of...
Persistent link: https://www.econbiz.de/10015192135
At the aggregate level, the evidence that deviations from purchasing power parity (PPP) are too persistent to be explained solely by nominal rigidities has long been a puzzle (Rogoff, 1996). Another puzzle from the micro price evidence of the law of one price (LOP), which is the basic building...
Persistent link: https://www.econbiz.de/10012544013
Building on the sequential identification result of Aguirregabiria and Mira (2019), this paper develops estimation and inference procedures for static games of incomplete information with payoff-relevant unobserved heterogeneity and multiple equilibria. With payoff-relevant unobserved...
Persistent link: https://www.econbiz.de/10015420292
Drawing on recent business cycle research on the Great Depression, we return to an argument we advanced in a 1996 article in the Journal of Monetary Economics—the argument that features of the Hawley-Smoot tariffs could have done more to decrease economic activity than is customarily believed,...
Persistent link: https://www.econbiz.de/10010283390
We review research using departures from the law of one price to measure the advent of globalization in Europe and Asia. In an application, we then study the role of distance and time in statistically explaining price dispersion across 32 Swedish towns for 19 commodities from 1732 to 1914. The...
Persistent link: https://www.econbiz.de/10015397905
In this paper, we argue that differences in the cost structures across sectors play an important role in firms' decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers. An important facet of our analysis...
Persistent link: https://www.econbiz.de/10011564723
We study the role of distance and time in statistically explaining price dispersion across 32 Swedish towns for 19 commodities from 1732 to 1914. The resulting large number of relative prices (502,689) allows precise estimation of distance and time effects, and their interaction. We find an...
Persistent link: https://www.econbiz.de/10011583200
The classical dichotomy predicts that all of the time-series variance in the aggregate real exchange rate is accounted for by non-traded goods in the consumer price index (CPI) basket because traded goods obey the Law of One Price. In stark contrast, Engel (1999) claimed the opposite: that...
Persistent link: https://www.econbiz.de/10012014539
We develop a simple model of financial intermediation with search and matching frictions between banks and firms. The model links credit market tightness - encapsulating the abundance of credit - to the search and opportunity costs of credit intermediation. Search costs generate lending to...
Persistent link: https://www.econbiz.de/10015339437
We develop a simple model of financial intermediation with search and matching frictions between banks and firms. The model links credit market tightness -encapsulating the abundance of credit- to the search and opportunity costs of credit intermediation. Search costs generate lending to...
Persistent link: https://www.econbiz.de/10015404595