The paper compares non-cooperative commodity taxation under the destination and origin principles under a variety of different assumptions about market structure. We consider a model of international duopoly with either quantity or price competition of firms and either segmented or integrated...

This paper studies the social desirability of agglomeration and the efficiency arguments for policy intervention in a simple, analytically solvable ‘new economic geography’ model with two trade integrating regions. The location pattern emerging as market equilibrium is “bubbleshaped”,...

Die Schaffung der Europäischen Währungsunion hatte in wissenschaftlichen Kreisen heftigste Kontroversen ausgelöst. Der vorliegende Beitrag unternimmt, dreieinhalb Jahre nach dem Beginn der Währungsunion, eine Bestandsaufnahme der Entwicklungen in den diesbezüglich zugrunde liegenden...

The risk of default that business firms face is very significant and differs widely across countries. This paper explores the links between countries’ business conditions and international trade embedment and the default risk at the country level from a theoretical point of view. Our main...

In den letzten Monaten stand das deutsche »Exportmodell« in der Kritik. Die deutschen Überschüsse seien mitverantwortlich für die Defizite der Nachbarländer und schaden den Handelspartnern. Ist diese Einschätzung gerechtfertigt? Für Gabriel Felbermayr, Universität Hohenheim, entbehren...

This paper explores the role of country asymmetries for trade and industrial policies with heterogeneous firms. Our analysis delivers a number of novel results. First, trade policies, infrastructure policies and industrial policies which improve the business conditions in one country have...

Informal long-term relationships and mutual confidence play a crucial role in modern economies in at least two dimensions. First, the performance of firms is strongly affected by their capacity to solve organizational questions effectively and this capacity is apparently strongly related to...