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We study ex post outsourcing of production in an imperfectly discriminating contest, interpreted here as a research … tournament or a procurement contest for being awarded some production contract. We find that the possibility of outsourcing …, outsourcing reduces the procurement costs of inducing a given level of effort if the contest organizer can collect entry fees …
Persistent link: https://www.econbiz.de/10010261411
We analyze the following questions associated with outsourcing and profit sharing under imperfect labour markets. How … does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit … sharing before wage formation or decide for profit sharing after wage formation. What is the relationship between outsourcing …
Persistent link: https://www.econbiz.de/10010264267
We analyze a model that focuses on the export/outsource decision. Outsourcing has the advantage of providing better … technology embodied in the local capital. The decision of whether to offer an outsourcing contract weighs these two effects … against each other. The host country accepts the outsourcing contract if the higher price they pay for the outsourced good is …
Persistent link: https://www.econbiz.de/10010264307
This paper addresses outsourcing in the two-type optimal income tax model. If the government is able to control … outsourcing via a direct tax instrument, outsourcing will not affect the marginal income tax structure. In the absence of a direct … tax instrument, and under the plausible assumption that higher outsourcing increases the wage differential, the government …
Persistent link: https://www.econbiz.de/10010264337
This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax … response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for …
Persistent link: https://www.econbiz.de/10010270536
It is analyzed the impacts of outsourcing cost and wage tax progression under labor market imperfections with Nash wage … bargaining and flexible outsourcing. With sufficiently strong (weak) labor market imperfection, lower outsourcing cost has a wage … negative effect on outsourcing. …
Persistent link: https://www.econbiz.de/10010270649
production to the other. In the country whose firms outsource production abroad, the government will respond to outsourcing by … the absence of outsourcing. The tax policy response by the government in the country that receives foreign production …
Persistent link: https://www.econbiz.de/10010274380
Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading...
Persistent link: https://www.econbiz.de/10010274459
-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …
Persistent link: https://www.econbiz.de/10010275003
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10010277412