Showing 1 - 10 of 18
In this paper we analyze dynamic incentives of a firm to invest in production facilities in a less developed country with lower wage costs and lower productivity. Foreign investment induces that, due to technological spillovers, productivity of local firms in the foreign country increases. Firms...
Persistent link: https://www.econbiz.de/10005132638
Aging organizations - regardless of whether they are firms, faculties, societies, political bodies, teams, or national academies - seek ways to rejuvenate. This paper demonstrates that the best way to keep an organization young is through a mixed strategy of recruiting both young and old, and...
Persistent link: https://www.econbiz.de/10004972970
In this paper, we analyze optimal foreign direct investment of a firm which operates in a duopolistic market. We characterize a technology spillover threshold and show that for an intensity of spillovers below this threshold, there is a unique locally asymptotic stable steady state with a...
Persistent link: https://www.econbiz.de/10011143866
Persistent link: https://www.econbiz.de/10005715458
Persistent link: https://www.econbiz.de/10010428679
Persistent link: https://www.econbiz.de/10014537290
By following the spirit in Favero and Milani (2005), we use recursive thick modeling to take into account model uncertainty for the choice of optimal monetary policy. We consider an open economy model and generate multiple models for only the aggregate demand and aggregate supply. Models are...
Persistent link: https://www.econbiz.de/10005537392
We demonstrate that achieving sensible convergence of prices to equilibrium is facilitated by market maker risk. \\ We introduce several criteria for price formation rules, and provide an example that satisfies all of them. The risk aversion of the market maker inevitably leads to price...
Persistent link: https://www.econbiz.de/10005537750
In this paper an analytical framework using robust control was developed for the one-state and one-control variable model to examine the response of the control to changes in the "free" parameter. However, in contrast to Gonzalez and Rodriguez (2003), the sign of the ``free" parameter in the...
Persistent link: https://www.econbiz.de/10005706529
Persistent link: https://www.econbiz.de/10005706797