Can Multistage Production Explain the Home Bias in Trade?

Equity Home Bias: Can Information Cost Explain the Puzzle?

Outsourcing with Home Bias and Trade Policy∗

This paper examines a simple model of outsourcing involving matching frictions and home bias in firms’ acquisition of intermediate goods. Two groups of seller firms—local sellers and foreign sellers—may face different degrees of search frictions even though they are identical in terms of productivity. Two groups of buyer firms are considered: one group accepts local and foreign sellers equally,...

Can the Trade-off Theory Explain Debt Structure?

We examine the optimal mixture and priority structure of bank and market debt using a trade-off model in which banks have the unique ability to renegotiate outside formal bankruptcy. Flexible bank debt offers a superior trade-off between tax shields and bankruptcy costs. Ease of renegotiation limits bank debt capacity, however. Optimal debt structure hinges upon which party has bargaining power...

FS IV 02 – 25 Strategic Trade Policy and the Home Bias in Firm Ownership Structure Steffen

Strategic Trade Policy and the Home Bias in Firm Ownership Structure by Steffen Huck and Kai A. Konrad In this note we consider the preferences of a profit maximizing firm for international ownership in a world in which firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms prefer national ownership and show that full indigenis...

A Multivariate Quality Control Procedure in Multistage Production Systems

In this paper a multivariate quality control procedure is offered in which several correlated stages are present in production systems and in each stage there are several correlated control variable. Using Hotelling's T2 statistic, first, each stage is tested for being out of control. Then out of control variables are selected using Murphy's method. The remainder of the research involves evalua...