This paper proposes a new method for measuring the degree to which the domestic capital stock is self-financed. The main idea is to use the national accounts to construct a self-financing ratio, indicating what would have been the stock of tangible capital supported by actual past national...

This paper explores a unique dataset that contains 100% of the customer áows from domestic dealers in the Brazilian FX retail market. We present two sets of results. First, we Önd a strict link between currency áows from the FX market and the Balance of Payments. Second, we examine the...

The common characteristic of R&D joint ventures between oligopolistic competitors, arms reduction talks, and study groups in law school is cooperation with rivals. Players benefit from cooperation, but any gain by their partner weakens their own position when competing for profits, security, or...

We analyze oligopolistic competition in a multi-period dynamic setting for goods with network effects. Two or more infinitely-lived firms produce incompatible products differentiated in their inherent quality. Consumers live for a single period and receive the network effect of the previous...

Individuals living in society are bound together by a social network, the complex of relationships that brings them into contact with other agents. In many social and economic situations, individuals learn by observing the behavior of others in their local environment. This process is called...

This paper evaluates the impact of globalization on the tax bases of countries at varying stages of development. We see globalization as a process that induces countries to embrace greater trade and financial integration, and macro stabilization. This in turn should shift their tax base from...

manufacturing industries, 99 countries, 1991-2007, extending Rajan-Zingales (1998). We utilize externalfinance dependence measures in a series of cross-sectional regressions of manufacturing industries’growth rates covering 17 years. Net portfolio debt inflows are negatively associated...

This paper evaluates the sustainability of large current account imbalances in the era when the Chinese GDP growth rate and current account/GDP exceed 10%. We investigate the size distribution and the durability of current account deficits during 1966-2005, and report the results of a simulation...

The evolution of institutions in the US and other unions provides clear lessons. There are large gains from buffering currency unions with a union-wide deposit insurance, and partial debt mutualisation. The credibility of a union deposit insurance scheme requires transparent funding and...

This paper tests if real and financial linkages between countries can explain why movements in the world’s largest markets often have such large effects on other financial markets, and how these cross-market linkages have changed over time. It estimates a factor model in which a...