We study the eect of a declining labor force on the incentives to engage in labor-savingtechnical change and ask how this eect is inuenced by institutional characteristics of the pensionscheme. When labor is scarcer it becomes more expensive and innovation investments that increaselabor...

Within a two-country model with involuntary unemployment, this paper investigatescorporate income taxation under separate accounting versus formula apportionment. Incontrast to separate accounting, under formula apportionment the corporate tax policy causesa fiscal externality which goes back to...

By combining two large data sets (on international trade flows and on mergers and acquisitions - M&As), we are able to test two implications of Neary´s (2003, 2004a) recent theoretical work. Analyzing M&As in a General Oligopolistic Equilibrium (GOLE) model incorporating strategic interaction...

Germany exhibits a strong reduction in domestic manufacturing production depth (bazaareffect). I argue that this reflects an unbundling of comparative advantage. Using a modelwhere Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments ofproduction, I compare a trading...

This paper extends the standard human capital model with real options. Real options influenceinvestment behavior when risky investments in human capital are irreversible and individualscan affect the timing of the investment. Option values make individuals more reluctant toinvest in human...

Economic evaluation of projects involving changes in mortality risk conventionally assumesthat lives are statistical, i.e., that risks and policy-induced changes in risk are small andsimilar among a population. In reality, baseline mortality risks and policy-induced changes inrisk often differ...

By using their financial reserves efficiently, pension funds can smooth shocks on assetreturns, and can thus facilitate intergenerational risk-sharing. In addition to the primarybenefit of improved time diversification, this form of risk allocation affords the additionalbenefit of allowing these...

We study the effects of demographic shocks and changes in the pension system on themacroeconomic performance of an advanced small open economy. An overlappinggenerationsmodel is constructed which includes a realistic description of the mortalityprocess. Individual agents choose their optimal...

We set up a model of generalised oligopoly where two countries of different size compete foran exogenous, but variable, number of identical firms. The model combines a desire bynational governments to attract internationally mobile firms with the existence of locationrents that arise even in a...

This paper analyses how tax morale and countries´ institutional quality affect the shadoweconomy, controlling in a multivariate analysis for a variety of potential factors. The literaturestrongly emphasizes the quantitative importance of these factors to understand the level andchanges of...