11,832 research outputs found
Multilateral Resistance to Migration
The rate of migration observed between two countries does not depend solely on their relative attractiveness, but also on the one of alternative destinations. Following the trade literature, we term the influence exerted by other destinations on bilateral flows as Multilateral Resistance to Migration, and we show how it can be accounted for when estimating the determinants of migration flows in the context of a general individual random utility maximization model. We propose the use of the Common Correlated Effects estimator (Pesaran, 2006) and apply it to high-frequency data on the Spanish immigration boom between 1997 and 2009. Compared to more restrictive estimation strategies developed in the literature, the bias goes in the expected direction: we find a smaller effect of GDP per capita and a larger effect of migration policies on bilateral flows.international migration, economic determinants, migration policies, time-varying attractiveness, multiple destinations
Corporate taxation and the location choice of foreign direct investment in EU countries. ESRI WP591, March 2018
This paper examines the impact of corporate taxation and other factors on the attractiveness
of EU countries to foreign direct investment. In comparison to previous analyses on the location choice
of multinational activity in the EU, we use an improved empirical methodology to account for more
flexible substitution patterns among alternative locations by considering groups of countries with
similar characteristics as location options. In addition, we account for the heterogeneity of investorsā
behaviour by considering intra-EU investments and investments from outside the EU. Furthermore, we
identify and quantify similarities and differences with respect to the effects of corporate taxation and
the effects of other factors on the location choice of foreign affiliates in manufacturing and services
Price Discrimination in Many-to-Many Matching Markets
We study second-degree price discrimination in markets where the product traded by the monopolist is access to other agents. We derive necessary and sufficient conditions for the welfareand the profit-maximizing mechanisms to employ a single network or a menu of non-exclusive networks. We characterize the optimal matching schedules under a wide range of preferences, derive implications for prices, and deliver testable predictions relating the structure of the optimal pricing strategies to conditions on the distribution of match qualities. Our analysis sheds light on the distortions associated with the private provision of broadcasting, health insurance and job matching services. JEL Classification Numbers:D82matching, two-sided markets, networks, adverse selection, incentives, mechanism design
MNEās Regional Location Choice - A Comparative Perspective on East Germany, the Czech Republic and Poland
The focus of this article is the empirical identification of factors influencing Foreign Direct Investment (FDI) in transition economies on a regional level (NUTS 2). The analysis is designed as benchmark between three neighboring post-communist regions, i.e. East Germany, the Czech Republic and Poland. Their different transition paths have not only resulted in economic differences. We can also observe today that the importance of pull factors for FDI varies significantly across the regions. This analysis shows that in comparison with Poland and the Czech Republic, East Germanyās major benefit is its purchasing power, its geographical proximity to West European markets, and its modern infrastructure. Furthermore, the analysis suggests that intra-industry linkages such as specialization and agglomeration economies are relevant factors for the location decision of foreign investors. This result can help to explain the regional divergence of FDI streams in transition economies.multinational enterprises, international business, regional economic activity: growth, development, and changes, discrete choice
Living-arrangement and university decisions of Dutch young adults
This paper analyses the nature of university and living-arrangement decisions at the example of Dutch students with a secondary education academic diploma. A random utility maximization nested logit model of living-arrangement and university decisions is estimated, allowing for distance and rent eĀ¤ects to vary according to the decision on whether to stay at parental home. Estimation results show that distance deters both at-homers and out-homers. Dutch youngsters are guided by consumption motives, rather than investment motives. They appear to attend university where their high school mates do. Tight housing markets lower the probability of choosing a given university. Male and low income students stay longer with parents, as do those with non-Dutch parents.living arrangements, university choice, random utility maximization, nested logit
On Feedback Control in Kelly Betting: An Approximation Approach
In this paper, we consider a simple discrete-time optimal betting problem
using the celebrated Kelly criterion, which calls for maximization of the
expected logarithmic growth of wealth. While the classical Kelly betting
problem can be solved via standard concave programming technique, an
alternative but attractive approach is to invoke a Taylor-based approximation,
which recasts the problem into quadratic programming and obtain the closed-form
approximate solution. The focal point of this paper is to fill some voids in
the existing results by providing some interesting properties when such an
approximate solution is used. Specifically, the best achievable betting
performance, positivity of expected cumulative gain or loss and its associated
variance, expected growth property, variance of logarithmic growth, and results
related to the so-called survivability (no bankruptcy) are provided.Comment: To appear in the proceedings of the 2020 IEEE Conference on Control
Technology and Applications (CCTA
Employee Health Insurance Decisions In a Flexible Benefits Environment
Empirical investigations of flexible benefits plans, an increasingly popular type of plan that allows employees to choose among multiple benefits options, have been limited. This study investigates hypotheses relating to the determinants of employees\u27 choices among six different health insurance options under a flexible benefits plan. Using employee-specific selection and demographic data provided by a large firm, we estimate a logistic regression model to analyze the effects of employee and plan characteristics on choice of health care plan. Results suggest that health plan decisions are significantly influenced by option premium, deductible and coinsurance amounts, and by employees\u27 age, gender, salary, and marital status. The results are considered within an expected utility maximization model
- ā¦