This paper shows that vertical foreign direct investemt will reduce prices but the aggregate welfare effect is unambiguaously positive only under free market entry. Using a standard model of imperfect competition, we develop this result by considering two different cases. In the first case, the...

We study how learning affects an uninformed monopolist?s supply and investment decisions under multiplicative uncertainty in demand. The monopolist is uninformed because it does not know one of the parameters deÞning the distribution of the random demand. Observing prices reveals this...

This paper describes the dynamics of rms' exports to dierent countries. Using a panel of almost 19,000 French exporters, we dene an export-relation as an observed positive export ow from a French rm to a destination. We establish the following facts: 1. There is a great deal of dynamics in rms'...

The dynamic structure of profit rates for 156 US manufacturing companies is analyzed by means of fractional integration techniques as an alternative to the commolny used ARMIA models with respect to the "persistence of profits". The results show - despite the short lengths of the series - that...

Important estimation problems in econometrics like estimation the value of a spectral density at frequency zero, which appears in the econometrics literature in the guises of heteroskedasticity and autocorrelation consistent variance estimation and long run variance estimation, are shown to be...

This note presents new results on existence of rich Fubini extensions. The notion of a rich Fubini extension was recently introduced by Sun (2006) and shown by him to provide the proper framework to obtain an exact law of large numbers for a continuum of random variables. In contrast to the...