Similar Search Results

Even small trade costs restore efficiency in tax competition

Becker, Johannes; Runkel, Marco - 2010

We introduce transport cost of trade in products into the classical Zodrow and Mieszkowski (1986) model of capital tax competition. It turns out that even small levels of transport cost lead to a complete breakdown of the seminal result, the underprovision of public goods. Instead, there is a...

Persistent link: https://www.econbiz.de/10010274798

Six distributional effects of environmental policy

Fullerton, Don - 2010

While prior literature has identified various effects of environmental policy, this note uses the example of a proposed carbon permit system to illustrate and discuss six different types of distributional effects: (1) higher prices of carbon-intensive products, (2) changes in relative returns to...

Persistent link: https://www.econbiz.de/10010274806

Incomplete contracts and the impact of globalization on consumer welfare

Defever, Fabrice - 2011

We embed a North-South trade model into an incomplete contracts setting where the production of heterogeneous firms can be geographically separated. When a Northern headquarter contracts with a Southern supplier instead of a Northern supplier, the presence of international incomplete contracts...

Persistent link: https://www.econbiz.de/10010274807

Technological determinants of the group-size paradox

Kolmar, Martin; Rommeswinkel, Hendrik - 2011

The present paper analyzes situations in which groups compete for rents. A major result in the literature has been that there are both cases where larger groups have advantages and cases where they have disadvantages. The paper provides two intuitive criteria which for groups with homogenous...

Persistent link: https://www.econbiz.de/10010274810

Political competition and Mirrleesian income taxation: A first pass

Bierbrauer, Felix J.; Boyer, Pierre C. - 2010

We study Downsian competition in a Mirrleesian model of income taxation. The competing politicians may differ in competence. If politicians engage in vote-share maximization, the less competent politician's policy proposals are attractive to the minority of rich agents, whereas those of the...

Persistent link: https://www.econbiz.de/10010274813

The empirics of general equilibrium trade theory: What have we learned?

Bernhofen, Daniel - 2010

data. Three lessons stand out. First, competitive and new trade theory models are complementary rather than competing ways …

Persistent link: https://www.econbiz.de/10010274817

The impact of financial market frictions on trade flows, capital flows and economic development

Bougheas, Spiros; Falvey, Rod - 2011

We introduce financial frictions in a two sector model of international trade with heterogeneous agents. The level of specialization in the economy (economic development) depends on the quality of financial institutions. Underdeveloped financial markets prohibit an economy to specialize in...

Persistent link: https://www.econbiz.de/10010274820

Higher order expectations, illiquidity, and short-term trading

Cespa, Giovanni; Vives, Xavier - 2011

We propose a theory that jointly accounts for an asset illiquidity and for the asset price potential over-reliance on … public information. We argue that, when trading frequencies differ across traders, asset prices reflect investors' Higher …-rely on public information, the market displays high illiquidity, and low volume of informational trading; conversely, when …

Persistent link: https://www.econbiz.de/10010274821

Asymmetric taxation and performance-based incentive contracts

Niemann, Rainer - 2011

This paper analyzes the effects of symmetric and asymmetric taxation on performance-based versus fixed remuneration contracts. I integrate a proportional corporation tax and a proportional wage tax into a binary principal-agent model. The wage tax increases the remuneration costs and makes the...

Persistent link: https://www.econbiz.de/10010274823

Selection biases in complementary R&D projects

Choi, Jay Pil; Gerlach, Heiko - 2011

This paper analyzes selection biases in the project choice of complementary technologies that are used in combination to produce a final product. In the presence of complementary technologies, patents allow innovating firms to hold up rivals who succeed in developing other system components....

Persistent link: https://www.econbiz.de/10010274825