The paper implementing the imperfect competitive equilibrium model, increasing returns to scale, the coordination failure problem and the learning-by-doing argument discusses the economic efficiency of local content requirements (LCRs). It is shown that the LCRs are economically unjustifiable...

Sovereign wealth funds (SWFs) are key actors in the global financial landscape of the twenty-first century. According to the OECD, at the peak of the global financial crisis, government driven international M&A reached US$120 billion, or 20% of the total international M&A. This dropped...

The authors discuss a number of issues related to the rise of sovereign wealth funds (SWFs) and state-owned enterprises (SOEs) in the world FDI market. More specifically, they review the type of sovereign FDI vehicles, identify the principal concerns related to them (focusing on national...

The last 20 years have been marked by a sharp rise in international demand for U.S. reserve assets, or safe stores-of-value. We argue that these trends in international capital flows are likely to be a boon for some (by a lot) but a bane for others (by less). Conversely, a sell-off of foreign...

The last 20 years have been marked by a sharp rise in international demand for U.S. reserve assets, or safe stores-of-value. What are the welfare consequences to U.S. households of these trends, or of a reversal? In a lifecycle model with aggregate and idiosyncratic risks, the young and oldest...