We develop a dynamic regulation game for a stock externality under asymmetric information and future market uncertainty …. Within this framework, regulation is characterized as the implementation of a welfare-maximization program conditional on …

country significantly attracts FDI. What is important for these pollution haven effects is not only regulation but also …

) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …

The offshoring of production by multinational firms has expanded dramatically in recent decades, increasing these firms … increase the probability that firms offshore there, while those that increase regulation in the labor market decrease such … probability. We also show that a firm’s probability of offshoring increases with the share of its employees who are immigrants …

selling abroad. Because offshoring requires larger sunk costs than domestic sourcing, some firms decide to offshore only when … between the domestic and the foreign market are greater. In turn, offshoring firms sell greater volumes, display less …