We develop a model in which multinational investors decide about the modes of organization, the locations of production, and the markets to be served. Foreign investments are driven by market-seeking and cost-reducing motives. We further assume that investors face costs of control that vary...

We develop a model in which multinational investors decide about the modes of organization, the locations of production, and the markets to be served. Foreign investments are driven by market-seeking and cost-reducing motives. We further assume that investors face costs of control that vary...

Der Angriffskrieg Russlands auf die Ukraine im Frühjahr 2022 und dessen Auswirkungen stellen Europa, und in besonderem Maße Deutschland, vor große wirtschaftliche Herausforderungen. Die Energiepreise sind seit Beginn des Krieges weiter kräftig gestiegen. Die deutliche Einschränkung...

Michael Hüther, Institut der deutschen Wirtschaft, sieht die Deindustrialisierung als ernstzunehmendes Risiko an. Verliere der Standort Deutschland durch anhaltend hohe Energiepreise und hohe Steuerlast international an Wettbewerbsfähigkeit, werden industrielle Investitionen weniger attraktiv....

Pass-through determines how consumers respond to taxes. We investigate the impact of imperfect price information on pass-through of commodity taxes. Our theoretical model predicts that the pass-through rate increases with the share of well-informed consumers. Pass-through is higher for the...

Die Corona-Pandemie und die Energiekrise haben in Europa und insbesondere in Deutschland deutliche Spuren hinterlassen. Die deutsche Wirtschaftsleistung liegt derzeit nahezu auf demselben Niveau wie zu Beginn der Corona-Pandemie vor knapp vier Jahren. Die im Jahresgutachten präsentierte Mittel-...

We analyze the effects of the 1984 breakup of the Bell System on the rate, diversity, and direction of US innovation. In the antitrust case leading to the breakup, AT&T, the holding company of the Bell System, was accused of using exclusionary practices against competitors. The breakup was...

Pass-through determines how consumers respond to taxes. We investigate the impact of imperfect price information on pass-through of commodity taxes. Our theoretical model predicts that the pass-through rate increases with the share of well-informed consumers. Pass-through is higher for the...

How do licensing and technology transfer influence the spread of General Purpose Technologies? To answer this question, we analyze the diffusion of the transistor, one of the most important technologies of our time. We show that the transistor diffusion and cross‐technology spillovers...

Recently, Blanchard and Kremer (BK) argued that disorganization has led to the output decline in the former Soviet Union. In this paper we introduce liquidity and credit constraints into the BK model and show how these problems can alleviate the hold-up problem. We argue further that barter...