We use an infinitely repeated prisoner's dilemma model to examine the role of inter-partner credible threat in international joint ventures (IJVs). Inter-partner credible threat refers to the certainty of either partner's retaliation given the other partner's earlier cheating. We argue that...

This paper introduces endogenous income tax rates as in Schmitt-Grohe and Uribe (1997), into the overlapping generations model with endogenous labor and consumption in both periods of life (e.g., Cazzavillan and Pintus, 2004). It shows that local indeterminacy can occur with small distortionary...

We show that the introduction of a constant tariff or subsidy levied on foreign energy can lead to a rich set of endogenous fluctuations around the unique steady state, including stable 2-, 4-, 8-, and 15-cycles, quasiperiodic orbits, and chaos. This is demonstrated in a standard neoclassical...

We study the relation between corporate social responsibility (CSR) and internal control quality by empirically testing that CSR can be used to reduce managers' agency behaviors. Consistent with this agency cost hypothesis, we find that CSR indeed improves the firms' internal control environment...