Three features of China’s trade patterns suggest that elements beyond factor abundance explain its export performance. The high penetration in world markets of labourintensive products has been accompanied by: (i) a high share in exports of productivityadvanced foreign-owned enterprises (FIEs), (ii) a high penetration of FIEs in labourintensive sectors, and (iii) a relative high sophistication ...

We argue that individual characteristics of managers can explain capital structure decisions like debt conservatism and pecking-order …nancing choices. Moreover, they can explain cross-sectional variation in these decisions despite identical …rm characteristics. We link the reluctance of (some) managers to access external capital markets, and in particular equity markets, to managerial overcon…...

It is important to consider therefore the economic effects of these links among national capital markets, including the effects on investment, growth, monetary policy, and exchange rates. In their paper for this conference, Michael Mussa and Morris Goldstein have combined a wide-ranging summary of the existing research on the integration of world capital markets with their own carefully conside...

This paper analyzes the existence of recursive equilibria in a class of convex growth models with incomplete markets. Households have identical CRRA-preferences, production displays constant returns to scale with respect to physical and human capital, and all markets are competitive. There are aggregate productivity shocks that affect the aggregate returns to physical and human capital investme...

Diversi®ed ®rms trade at a discount relative to comparable portfolios of stand-alone ®rms. One explanation is that these ®rms have inecient internal capital markets. We examine the link between ®rm value and the value of internal capital markets using a new form of corporate restructuring called tracking stock. We present a model that illustrates that the announcement e€ect of a tracking stock...

Since the collapse of the Soviet Union in 1991, the Russian Federation ("Russia") and former soviet satellite countries and republics of Central and Eastern Europe ("Soviet Bloc") have struggled with privatizing housing and establishing market-based residential mortgage systems. This thesis addresses the recent efforts of three former Soviet Bloc countries (the Czech Republic, Hungary and Polan...

Competitive market innovation contest platforms are increasingly used by businesses to identify new products or services to offer their customer base; yet, the degree to which social capital has been ex-plored within these online communities remains scarce. While there is ample support for the presence of social capital within other forms of virtual communities to facilitate knowledge sharing, ...

How do financial frictions affect the optimal inflation rate? Can financial frictions alone annul the long-run super-neutrality of money? Should the inflation rate be higher in emerging market economies with less developed financial markets than in advanced economies, as is currently observed? To answer these questions we set up an incomplete markets model in which households choose portfolios ...

This paper offers a quantitative description of European private equity markets and compares the recent development in these markets with the development of the US venture capital market. European markets for private equity vary considerably with respect to the investments in young high-technology enterprises, as well as with respect to the types of passive investors who invest capital in priva...

A recent common view of finance experts is that it is becoming increasingly difficult to understand how the economy as a whole works. Although the efficient market theory might be considered an ideal model enabling the interpretation of market behavior, it has begun to lose ground, and the rationality hypothesis failed to explain the excessive volatility of the returns and trading volume record...