Power in the Multinational Corporation in Industry Equilibrium

Recent theories of the multinational corporation introduce the property rights model of the firm and examine whether to integrate our outsource firm activities locally or to a foreign country. This paper focus instead on the internal organization of the multinational corporation by examining the power allocation between headquarters and subsidiaries. We provide a framework to analyse the interaction between the decision to serve the local market by exporting or FDI, market acces and the optimal mode of organization of the multinational corporation. We find that subsidiary managers are given most autonomy in their decision how to run the firm at intermediate levels of local competition. We then provide comparative statics for changes in fixed FDI entry costs and trade costs, information technology, the number of local competitors, and in the size of the local market

Corporate Hierarchies and the Size of Nations: Theory and Evidence

Corporate organization varies within a country and across countries with country size. The paper starts by establishing some facts about corporate organization based on unique data of 660 Austrian and German corporations. The larger country (Germany) has larger firms with flatter more decentral corporate hierarchies compared to the smaller country (Austria). Firms in the larger country change their organization less fast than firms in the smaller country. Over time firms have been introducing less hierarchical organizations by delegating power to lower levels of the corporation. We develop a theory which explains these facts and which links these features to the trade environment that countries and firms face. We introduce firms with internal hierarchies in a Krugman (1980) model of trade. We show that international trade and the toughness of competition in international markets induce a power struggle in firms which eventually leads to decentralized corporate hierarchies. We offer econometric evidence which is consistent with the models predictions

On computational tools for Bayesian data analysis

While Robert and Rousseau (2010) addressed the foundational aspects of Bayesian analysis, the current chapter details its practical aspects through a review of the computational methods available for approximating Bayesian procedures. Recent innovations like Monte Carlo Markov chain, sequential Monte Carlo methods and more recently Approximate Bayesian Computation techniques have considerably increased the potential for Bayesian applications and they have also opened new avenues for Bayesian inference, first and foremost Bayesian model choice.Comment: This is a chapter for the book "Bayesian Methods and Expert Elicitation" edited by Klaus Bocker, 23 pages, 9 figure

Importance sampling methods for Bayesian discrimination between embedded models

This paper surveys some well-established approaches on the approximation of Bayes factors used in Bayesian model choice, mostly as covered in Chen et al. (2000). Our focus here is on methods that are based on importance sampling strategies rather than variable dimension techniques like reversible jump MCMC, including: crude Monte Carlo, maximum likelihood based importance sampling, bridge and harmonic mean sampling, as well as Chib's method based on the exploitation of a functional equality. We demonstrate in this survey how these different methods can be efficiently implemented for testing the significance of a predictive variable in a probit model. Finally, we compare their performances on a real dataset

Bayesian Core: The Complete Solution Manual

This solution manual contains the unabridged and original solutions to all the exercises proposed in Bayesian Core, along with R programs when necessary.Comment: 118+vii pages, 21 figures, 152 solution

3D discrete element modeling of concrete: study of the rolling resistance effects on the macroscopic constitutive behavior

The Discrete Element Method (DEM) is appropriate for modeling granular materials [14] but also cohesive materials as concrete when submitted to a severe loading such an impact leading to fractures or fragmentation in the continuum [1, 5, 6, 8]. Contrarily to granular materials, the macroscopic constitutive behavior of a cohesive material is not directly linked to contact interactions between the rigid Discrete Elements (DE) and interaction laws are then defined between DE surrounding each DE. Spherical DE are used because the contact detection is easy to implement and the computation time is reduced in comparison with the use of 3D DE with a more complex shape. The element size is variable and the assembly is disordered to prevent preferential cleavage planes. The purpose of this paper is to highlight the influence of DE rotations on the macroscopic non-linear quasi-static behavior of concrete. Classically, the interactions between DE are modeled by spring-like interactions based on displacements and rotation velocities of DE are only controlled by tangential forces perpendicular to the line linking the two sphere centroids. The disadvantage of this modeling with only spring-like interactions based on displacements is that excessive rolling occurs under shear, therefore the macroscopic behavior of concrete is too brittle. To overcome this problem a non linear Moment Transfer Law (MTL) is introduced to add a rolling resistance to elements. This solution has no influence on the calculation cost and allows a more accurate macroscopic representation of concrete behavior. The identification process of material parameters is given and simulations of tests performed on concrete samples are shown

X-ray polarimetric signatures induced by spectral variability in the framework of the receding torus model

Obscuring circumnuclear dust is a well-established constituent of active galactic nuclei (AGN). Traditionally referred to as the receding dusty torus, its inner radius and angular extension should depend on the photo-ionizing luminosity of the central source. Using a Monte Carlo approach, we simulate the radiative transfer between the multiple components of an AGN adopting model constraints from the bright Seyfert galaxy NGC 4151. We compare our model results to the observed near-IR to UV polarization of the source and predict its X-ray polarization. We find that the 2-8 keV polarization fraction of a standard AGN model varies from less then a few percent along polar viewing angles up to tens of percent at equatorial inclinations. At viewing angles around the type-1/type-2 transition the X-ray polarization variability differs between a static or a receding torus scenario. In the former case, the expected 2-8 keV polarization of NGC 4151 is found to be 1.21% +/- 0.34% with a constant polarization position angle, while in the later scenario it varies from 0.1% to 6% depending on the photon index of the primary radiation. Additionally, an orthogonal rotation of the polarization position angle with photon energy appears for very soft primary spectra. Future X-ray polarimetry missions will be able to test if the receding model is valid for Seyfert galaxies seen at a viewing angle close to the torus horizon. The overall stability of the polarization position angle for photon indexes softer than {\Gamma} = 1.5 ensures that reliable measurements of X-ray polarization are possible. We derive a long-term observational strategy for NGC 4151 assuming observations with a small to medium-size X-ray polarimetry satellite.Comment: 10 pages, 8 Figures, accepted for publication in A&