This paper develops a theoretical model of multinational firms with an internal capital market. Main reasons for the emergence of such a market are tax avoidance through debt shifting and the existence of institutional weaknesses and financial frictions across host countries. The model serves to...

We formulate a two-country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor-market imperfections arise by virtue of country-specific real minimum wages. Two principal experiments are considered. First, we show that trade...

Intro -- Contents -- Series Foreword -- 1 Introduction -- I Motivation -- 2 From Theory to Practice -- 3 The Political Economy of Climate Instruments -- II Empirical Aspects -- 4 How Trust in Governments Influences the Acceptance of Environmental Taxes -- 5 Political Determinants of Fossil Fuel...