We extend the Behrens et al. (2009) general equilibrium heterogeneous firms framework by horizontal foreign direct investment. The model features endogenously determined firm entrants, wages, productivity cutoff s, flexible price markups and allows for wage differentials across countries in...

This paper highlights the following unique characteristic of the piped water market: Consider two firms that supply different water qualities into the same net. The mixed water quality of both firms defines the fixed costs of the net. These costs decrease with a higher water quality. Our model...

We develop a theory of a firm in an environment with incomplete contracts. The firm’s headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...

We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...

In-memory technology will radically transform the world of enterprise information systems Ðaccording to our enterprising quartet of Tim, Stephan, Martin, and Christian. Their article provides a comprehensive description of the elements of in-memory technology and the ways it might improve the...

Recent studies indicate that firms often outsource standard and simple tasks, while keeping complex and important inputs inside their boundaries. This observation is difficult to reconcile with the property rights approach of the firm, which suggests that important components should be...

We develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into basic research to improve their technological potential. These research investments tighten firm selection and raise the average productivity of firms in the market, thereby...

We develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into basic research to improve their technological potential. These research investments tighten firm selection and raise the average productivity of firms in the market, thereby...

I introduce an alternative parameter-based definition of component- and headquarter-intensive sectors into the seminal model of global sourcing by Antràs and Helpman (2004, JPE). This approach overcomes problems of the original sector definition like counter intuitive classifications or...

We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...