We consider a model of a TV oligopoly where TV channels transmit advertising and viewersdislike such commercials. We show that advertisers make a lower profit the larger the numberof TV channels. If TV channels are sufficiently close substitutes, there will be underprovisionof advertising...

A pay-as-you-go (paygo) pension program may provide intergenerational pooling of risks toindividuals´ labor and capital income over the life cycle. By means of a model that providesilluminating closed form solutions, we demonstrate that the magnitude of the optimal paygoprogram and the nature...

This paper investigates replacing separate taxation by consolidation and formularyapportionment in a Bottom-up Federation, when a multijurisdictional firm is mobile invarious respects. The reform is decided cooperatively by all the jurisdictions or by some ofthem, while tax rates remain within...

This paper analyzes the impact of taxes and lending conditions on the financial structure ofmultinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates ofGerman multinationals in 26 countries in the period from 1996 until 2003. In accordance withthe theoretical...

This paper uses German evidence to address two questions about corporate governance. Theeffects of ownership on corporate governance have received much recent attention, but verylittle of this has been devoted to the appropriate way to measure firm ownership. The resultsof this paper show that...

It is widely recognized that "market failure" prevents efficient risksharing in natural disaster insurance. As a consequence, many countriesadopted institutional frameworks presenting public sector participation,often praised as public-private partnerships. We define risk selection asa situation...

By combining two large data sets (on international trade flows and on mergers and acquisitions - M&As), we are able to test two implications of Neary´s (2003, 2004a) recent theoretical work. Analyzing M&As in a General Oligopolistic Equilibrium (GOLE) model incorporating strategic interaction...

Germany exhibits a strong reduction in domestic manufacturing production depth (bazaareffect). I argue that this reflects an unbundling of comparative advantage. Using a modelwhere Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments ofproduction, I compare a trading...

This paper extends the standard human capital model with real options. Real options influenceinvestment behavior when risky investments in human capital are irreversible and individualscan affect the timing of the investment. Option values make individuals more reluctant toinvest in human...

Economic evaluation of projects involving changes in mortality risk conventionally assumesthat lives are statistical, i.e., that risks and policy-induced changes in risk are small andsimilar among a population. In reality, baseline mortality risks and policy-induced changes inrisk often differ...