AbstractThe following sections are included:SummaryIntroductionAn Overview of Trade in ServicesA brief historyGATS and a framework for services tradeCurrent trends in services tradeRise of Trade in Information-Intensive Services: Some Intuitively Plausible ExplanationsU.S. Trade in...

Trade in services has increased significantly and the United States has been a leader in services trade. The U.S. not only accounts for the largest share of world trade in private services but also runs a substantial amount of surplus in services trade. One important trend has been the rapid...

Information-intensive services are being globally disaggregated as corporations respond to the pressures of increasing global competition, and take advantage of the opportunities made available by the progress of information technology and the emerging global work force. In order to globally...

A firm can merge with one of n potential partners. The owner of each firm has private information about both his firm’s stand-alone value and a component of the synergies that would be realized by the merger involving his firm. We characterize incentive-efficient mechanisms in two cases....

We characterize incentive-efficient merger outcomes when payments can be made both in cash and stock. Each firm has private information about both its stand-alone value and a component of the (possibly negative) potential synergies. We study two cases: when transfers can, and cannot, be made...

This paper develops a dynamic model of the capital structure based on the need to collateralize loans with tangible assets. The model provides a unified theory of optimal firm financing in terms of the optimal capital structure, investment, leasing, and risk management policy. Tangible assets...

We study whether borrowers optimally conserve debt capacity to take advantage of investment opportunities due to temporarily low asset prices, when financing is subject to collateral constraints due to limited enforcement. We find that borrowers may exhaust their debt capacity and thus may be...

Both financing and risk management involve promises to pay that need to be collateralized, resulting in a financing versus risk management trade-off. We study this trade-off in a dynamic model of commodity price risk management and show that risk management is limited and that more financially...

We consider a manufacturing system with product recovery. The system manufactures a new product as well as remanufactures the product from old, returned items. The items remanufactured with the returned products are as good as new and satisfy the same demand as the new item. The demand rate for...