Border carbon adjustments (BCA) imply that high-income (H) countries set taxes on carbon-intensive imports proportional to the carbon content of these imports, to match their own carbon taxes. This paper considers the use of BCA policies to incentivize carbon taxation in low-income exporter...

This paper presents an endogenous switching regression model for the exchange rate process where the switch is defined by the central bank criteria functions for intervening. We study the signal effect of interventions on the exchange rate using Norwegian daily data on official interventions. We...

The paper analyzes the determinants of capital structure choices for Hungarian manufacturing firms in the period 1992-2006. First, these firms have most likely difficulties to plan long-term investment since short-term liabilities has a dominant role in their corporate capital structure. Second,...

In a model of repeated games, we determine the conditions under which cooperation is an equilibrium outcome among the G-20 countries. We consider first, that members are uncertain about the lifespan of the G-20. Second, the nature of member countries and their interrelations can change because...

I test the bipolar view hypothesis on the exchange rates of countries of the AMF which are countries with relative free capital mobility. I find that oil price shocks seem to be the source of less flexible exchange rates

The Norwegian currency basket and the NOK/USD exchange rate observed at two different times of the day are modeled as ARCH or GARCH process. The analysis yields four main conclusions. First, the conditional variance of the basket index is smaller than the conditional variance of the NOK/USD...

We formulate a mathematical model for the optimal control of the exchange rate. The control consists of a stochastic control, and an impulse control. We give general sufficient conditions for its solution. We consider a government that has two means of avoiding the foreign exchange rate...

Bulgaria follows a currency board tied to the euro and we find that multi-product firms (MPFs) specializing only in Non-EU markets absorb exchange rate movements relatively more in their export volume than in their prices of every variety. Such effects can be however offset by cannibalization...