The discussion focuses on three themes. One is the divergence between positions of business associations and concerns of individual entrepreneurs regarding several determinants of investment. Another issue is under what conditions economic growth can be achieved under democracy; why market reforms have generated little private investment in many cases, and which government policies and politica...

This paper surveys the literature on the implications of international capital mobility for national tax policies. Our main issue for consideration in this survey is whether taxation of income, specifically capital income will survive, how border crossing investment is taxed relative to domestic investment and whether welfare gains can be achieved through international tax coordination. We deve...

The discussion focuses on three themes. One is the divergence between positions of business associations and concerns of individual entrepreneurs regarding several determinants of investment. Another issue is under what conditions economic growth can be achieved under democracy; why market reforms have generated little private investment in many cases, and which government policies and politica...

Research on multinational corporations (MNCs) and host government political risk in developing countries has largely ignored local electoral politics, economic policies, and the MNC investment incentives they may generate. In response, I develop and test a framework for understanding MNC risk and investment behavior based on political business cycle considerations. Analyses of 408 MNC investmen...

Investment in advanced defense technologies is a common characteristic of modern age armed forces. The operational benefit of such technologies is an S-shaped function of their technological progress, which is highly uncertain. We model investment problem facing a defense decision maker, aiming to maximize the value of a military system, by choosing its target technological level and the quanti...

In this paper, we construct and analyze inventory and investment in quality im­ provement policies under return on investment (ROI) maximization. In our model, the level of quality is represented by the fraction of an order quantity meeting the quality requirements such £is product specifications. The key contributions of this paper are the establishment of an ROI model and characterization of ...

This paper analyzes optimal investment policies for pension funds of a defined benefit (DB) type. The nature of a DB fund induces a natural modeling of preferences being of the mean-downside risk type. With compensation for inflation as an explicit goal of a pension fund, a natural reference point for the risk measure is the future (indexed) value of the liabilities. Results are presented for d...

This study attempts to measure the inefficiency associated with aggregate investment in a transitional economy. The inefficiency is decomposed into allocative and production inefficiency based on standard production theory. Allocative inefficiency is measured by disequilibrium investment demand. Institutional factors are then taken into consideration as possible explanatory variables of the dis...

We examine the effect of introducing credit default swaps (CDSs) on firms’ investment and financing policies. Our model allows for dynamic investment and dynamic financing using equity and debt, and debt holders can trade in the CDS market. After calibrating the model, we compare an economy with a CDS market to an economy without one. The model contains both positive and negative effects of CDS...

This paper reassesses the burden of the current U.S. international tax regime and reconsiders well-known welfare benchmarks used to guide international tax reform. Reinventing corporate tax policy requires that international considerations be placed front and center in the debate on how to tax corporate income. A simple framework for assessing current rules suggests a U.S. tax burden on foreign...