Do rms maintain their chosen market serving mode over time if they are confronted with dynamic processes such as uncertain productivity? What are the determinants for switching between market serving modes over time? Within a partial equilib- rium model which combines the proximity-concentration...

The European integration process has removed barriers to trade within Europe. We analyze which integration step has most profoundly influenced the trending behavior of export openness. We endogenously determine the single most decisive break in the trend, account for strong cross-country...

The theoretical claim that ethnic networks encourage trade has found broad empirical support in the literature on migration, business networks and international trade. Ethnic networks matter for the exporting firm, as they exhibit the potential to lower fixed and variable cost of exporting. This...

Immigration impacts the economy in ample ways: it affects growth, wages and total factor productivity. This study deals with the effects of immigration on firm exports. Can firms benefit from hiring immigrants to expand their export sales? Or do immigrants who live in the firm’s region affect...

Using a cross-section of countries, we adapt Frankel and Romer's (1999) IV strategy to international labor mobility. Controlling for institutional quality, trade, and nancial openness, we establish a robust and non-negative causal eect of immigration on real percapita income.

For both economic, political and administrative reasons, a mixed design of permit market, bubble and tax is preferable for CO2 regulation in Denmark.

What are the roots of social capital and how can it be measured and built? Social capital is considered as a new production factor which must be added to the conventional concepts of human and physical capital. Social capital is productive because it increases the level of trust in a society and...

The notion of "social capital" was first introduced by the sociologist James Coleman in 1988. He defined it as "the ability of people to work togather for common purposes in groups and organizations". It is argued that a group with members that trust each other can accomplish more economic groth...

In a world of roving bandits a sub-optimal provision of collective gods exists, most notably security and economic growth. This creates an opportunity for roving bandits to act as political entrepreneurs by becoming stationary bandits and as strong rulers monopolize vilence and provide...

Two main results in traditional tax theory states the following. First, general taxes minimize the welfare loss from changed relative prices. Second, because the total public budget tends to exceed the optimal size, a leader (here named "troop leader") is needed in the budget process to prevent...