international labor and capital flows complements or substitutes in a global context foreign direct investment fdi and migration substitute one another in the matching process between workers and firms yet migrants provide information about future investment opportunities in their country of origin evidence from u s data is consistent with contemporaneous substitutability and dynamic complementarity between migration and fdi

an empirical study of the rule of thumb consumption model in five east asian countries we investigate campbell and mankiw s rule of thumb consumption model using data from five east asian countries we find that the fraction of income attributed to the rule of thumb consumers are generally substantial for these countries in particular the fractions for them are generally higher than those of oecd countries found in previous studies furthermore the estimates of the fractions are robust to variant specifications of the rule of thumb consumption model these results are favourable to he liquidity constraint justification of the rule of thump consumption model

return migration uncertainty and precautionary savings this paper presents a life cycle model where migrants determine re migration and consumption simultaneously in a stochastic environment whether precautionary savings of migrants are above or below those of natives is ambiguous in general the sign depends on the risk in host and home country labor markets and on the correlation of labor market shocks furthermore the effect of an uncertain environment on migration and re migration plans cannot be unambiguously signed for the general case it depends on the size of the wage differential as well as the relative risk the migrant exhibits in the two labor markets

imperfect information and consumption in the united states and the united kingdom pischke 1995 has argued that imperfect information may account for the failure of hall s permanent income hypothesis to explain the behaviour of aggregate consumption we identify the restrictions that pischke s theory places on the dynamics of aggregate consumption and test them using quarterly data for the united kingdom and united states our results suggest that while pischke s model explains some features of the data which the hall model cannot it is formally rejected

where enterprises lead people follow links between migration and fdi in germany abstract standard neoclassical models of economic integration are based on the assumptions that capital and labor are substitutes and that the geography of factor market integration does not matter yet these two assumptions are violated if agglomeration forces among factors from specific source countries are at work agglomeration implies that factors behave as complements and that the country of origin matters this paper analyzes agglomeration between capital and labor empirically we use state level german data to answer the question whether and how migration and foreign direct investment fdi are linked stocks of inward fdi and of immigrants have similar determinants and the geography of factor market integration matters there are higher stocks of inward fdi in german states hosting a large foreign population from the same country of origin this agglomeration effect is confined to higher income source countries

remittances and the dutch disease abstract using data for el salvador and bayesian techniques we develop and estimate a two sector dynamic stochastic general equilibrium model to analyze the effects of remittances on emerging market economies we find that whether altruistically motivated or otherwise an increase in remittance flows leads to a decline in labor supply and an increase in consumption demand that is biased toward non tradables the higher non tradable prices serve as incentive for an expansion of that sector culminating in reallocation of labor away from the tradable sector a phenomenon known as the dutch disease quantitative results also indicate that remittances improve the welfare of households because they smooth income flows and increase consumption and leisure levels a bvar analysis provides results that are consistent with the dynamics of the model

market watch information and availability cascades among the media and investors in the u s ipo market in this study we advance current research on social influence in markets by examining how the recency and availability of information about others actions within and between different communities influence their allocation of attention and their evaluations specifically we examine how the media and investors allocate attention to and evaluate newly public firms in the days following their initial public offerings ipos our findings have implications for understanding the fieldwide processes through which the value of new firms is established in markets

migration remittances and the family remittances by migrants along with migration itself are elements in a migrant familys intertemporal contractual arrangement the reasons why the migrant and his family voluntarily enter into a mutually beneficial contractual arrangement with each other rather than with a 3rd party are discussed and the conditions under which the contractual arrangement is self enforcing are identified both parties can usually benefit from a number of pareto efficient mutual contractual arrangements this gives rise to an indeterminacy problem solved through a bargaining process between the parties who consequently converge to a contractual arrangement implying a specific flow of migrant to family remittances the chosen contractual arrangement reflects the relative bargaining powers of the parties and variables impinging upon these powers thus bear upon remittances in the light of these arguments tests are conducted on observed remittance behavior across individual migrants in botswana authors

partial adjustment and the permanent income hypothesis abstract the paper extends the permanent income hypothesis to incorporate two alternative theories of partial adjustment the first is the conventional forward looking quadratic costs of adjustment model the second develops the idea that adjustment of consumption to changes in permanent income are faster the more advanced is the notice of such changes both theories can in principle account for the excess smoothness and excess sensitivity phenomena highlighted in recent research both models are applied to u s and u k quarterly data the second model appears to provide a more satisfactory explanation of consumption in the two countries

remittances financial development and growth abstract despite the increasing importance of remittances in total international capital flows the relationship between remittances and growth has not been adequately studied this paper studies one of the links between remittances and growth in particular how local financial sector development influences a country s capacity to take advantage of remittances using a newly constructed dataset for remittances covering about 100 developing countries we find that remittances boost growth in countries with less developed financial systems by providing an alternative way to finance investment and helping overcome liquidity constraints this finding controls for the endogeneity of remittances and financial development does not depend on the particular measure of financial sector development used and is robust to a number of robustness tests including threshold estimation we also provide evidence that there could be an investment channel trough which remittances can promote growth especially when the financial sector does not meet the credit needs of the population

a theory of remittances as an implicit family loan arrangement abstract the idea of an implicit and informal loan agreement between family members to explain migrants remittances is not new but its implications have not been fully explored in the theoretical literature many empirically testable propositions may be derived from this hypothesis when trying to explain why emigrants remit what the time profile of remittances is how it depends on the intent to stay on the expected length of stay and on interest rates what use people make of remittances and how the home family consumption behavior is affected by the economic prospects in the receiving country furthermore this theory yields many interesting policy prescriptions for less developed countries wishing to maximize the remittance flow from emigrants

brain drain and human capital formation in developing countries winners and losers using new data on emigration rates by education level we examine the impact of brain drain migration on human capital formation in developing countries we find evidence of a positive effect of skilled migration prospects on gross human capital formation in a cross section of 127 countries for each country of the sample we then estimate the net effect of the brain drain using counterfactual simulations countries combining relatively low levels of human capital and low emigration rates are shown to experience a beneficial brain drain and conversely there are more losers than winners and the former tend to lose relatively more than what the latter gain

remittances and development in latin america flows of workers remittances have become a major source of external finance for developing countries and are particularly important in latin america and the caribbean where they are estimated to have reached 40 billion in 2004 not surprisingly academics policymakers and development practitioners in general have been devoting increasing attention to the potential development impact that these flows may have on receiving countries this paper contributes to this debate along four dimensions first it reviews the evolution of remittances flows to latin america using balance of payments data and compares these statistics with estimates of remittances income based on household surveys second the paper describes the varying profile of remittances recipients in ten latin american countries third the paper reviews the few macro and microeconomic studies that have estimated the impact of remittances on poverty and inequality finally the paper expands some of the existing works to investigate the extent to which that impact is different in latin america and varies across countries in the region

media legitimation effects in the market for initial public offerings in this study we argue that media provided information affects investors impressions of newly public firms in 225 initial public offerings ipos the volume of mediaprovided information had a negative diminishing relationship with underpricing and a positive diminishing relationship with stock turnover on the first day of trading the relationship between the tenor of media provided information and underpricing increases at a nonlinear rate and decreases similarly for turnover findings provide important evidence that publicly available information not only reflects ipos legitimacy but also adds to their legitimacy and influences investor behavior in the last 20 years an increasing amount of research on markets has been conducted from a social constructionist perspective emphasizing how social structures enhance the flow of useful and credible information that market participants use to reduce the uncertainty of market exchanges e g aldrich fiol 1994 zuckerman 1999 further recent organizational research has begun to stress the influence of information intermediaries such as financial analysts and the media on mar

foreign direct investment and country specific human capital i introduction the past three decades have witnessed an unprecedented increase in foreign direct investment fdi in the world annual fdi flows from and to organisation for economic cooperation and development oecd countries have increased more than 30 fold from 1982 to 2005 while the world trade merely quadrupled during the same period the ratio of gross private capital flows to gross domestic product gdp has risen from 10 3 in 1990 to 32 4 in 2005 the ratio of fdi flows to gdp has climbed up from 2 2 in the early 1990s to 4 4 in 2005 1 as fdi gained importance in the international movement of capital a variety of theoretical and empirical studies have investigated the factors that determine fdi 2 in this article we offer an important but under studied determinant of fdi foreign educated labor in fdi host countries specifically using international bilateral data on fdi and foreign education we present empirical evidence on the role of country specific foreign educated labor in an fdi host country as a determinant of foreign direct investments production involves the process of combining physical capital and the human capital of employees human capital includes the general skills of workers but it also includes their knowledge of firm specific technology managerial skills specific to the organization and efficient communication skills with co workers consequently the labor that possesses these firm specific skills which can be readily used by a firm can be more productive in that firm than in other firms when a firm invests in a foreign country through a subsidiary that shares the technology of the parent firm the labor force that has acquired various types of human capital specific to the parent firm and thus to the subsidiary can be more productive in the foreign subsidiary for instance the local managers of a foreign subsidiary who are able to speak the same language of the managers of their parent firm or who know thoroughly well how the parent firm and its subsidiaries are organized and operated can be more productively utilized in the subsidiary firm since human capital specific to a firm and its foreign subsidiaries can be acquired through education provided in the country of the parent firm the availability of workers in a potential fdi host country who studied in the parent firm country can be an important deciding factor for a firm in investing abroad through its foreign subsidiary 3 foreign training can provide various types of country specific human capital that would increase labor productivity more in the host country of training than in other countries country specific human capital includes language capital which has been shown by numerous papers such as chiswick and miller 1993 and lazear 1999 to have considerable importance in labor market performances knowledge on firm organization and social system is another example of country specific human capital that can be acquired through foreign training foreign education can also enhance the productivity of students in firms of the host country because it provides information about the ability and potential of students in a form that can be more easily processed by firms in the host country greater knowledge regarding employees allows firms to utilize manpower more efficiently and enhance workers productivity as pointed out by becker 1993 who discusses low worker mobility across countries as evidence of the importance of country specific training earlier theoretical models in international trade such as macdougall 1960 attribute international capital movement to the difference in factor endowment measured by physical capital per worker 4 empirical findings however show that the actual capital flows fall short of the theoretical prediction that capital moves from developed economies to developing economies to take advantage of the higher rates of returns to capital

the shadow value of migrant remittances income and inequality in a household farm economy this article offers econometric evidence that income remittances sent home by family migrants stimulate household farm incomes indirectly by relieving credit and risk constraints on household farm production a high but unequally distributed shadow value of migrant remittances appears to reinforce an equalising direct effect of remittances on the income distribution across a sample of household farms in rural mexico

remittances transaction costs and informality abstract recorded workers remittances to developing countries reached 167 billion in 2005 bringing increasing attention to these flows as a potential tool for development in this paper we explore the determinants of remittances and their associated transaction costs we find that recorded remittances depend positively on the stock of migrants and negatively on transfer costs and exchange rate restrictions in turn transfer costs are lower when financial systems are more developed and exchange rates less volatile the negative impact of transactions costs on remittances suggests that migrants either refrain from sending money home or else remit through informal channels when costs are high we provide evidence from household surveys supportive of a sizeable informal sector

saving and rational expectations evidence for the u k macdonald and speight i989 hereafter ms report tests of the rational expectations permanent income hypothesis hereafter repi based on quarterly uk data from i966 i i986 3 they find that the formal restrictions implied by repi can be rejected moreover in striking contrast to the predictions of repi and the results presented in campbell i987 for the united states and campbell and clarida 1987 for canada and the united kingdom they find that saving positively granger causes the change in labour income ms s results are however based on a seriously miscalculated real labour income series in this paper we present tests of repi based on a measure of labour income corrected for both this error and for a conceptual flaw in their definition our main findings are that in accordance with repi saving negatively granger causes the change in labour income but that the restrictions implied by repi can be strongly rejected whether or not allowance is made for transitory consumption

testing the brain gain hypothesis micro evidence from cape verde abstract does emigration really drain human capital accumulation in origin countries this paper explores a unique household survey designed and conducted to answer this research question we analyze the case of cape verde a country with allegedly the highest brain drain in africa despite a marked record of income and human capital growth in recent decades we propose the first explicit test of brain drain arguments according to which the prospects of own future migration can positively impact educational attainment our most conservative estimates using individual specific variation in economic conditions at the destination indicate that a 10 pp increase in the probability of own future migration improves the probability of completing intermediate secondary schooling by nearly 4 pp for individuals who do not migrate before age 16 these findings are robust to the choice of instruments and econometric specification counterfactual simulations point to significant human capital gains from lowering migration barriers

network effects and the dynamics of migration and inequality theory and evidence from mexico international migration is costly and initially only the middle class of the wealth distribution may have both the means and incentives to migrate which can increase inequality in the sending community however the migration networks formed lower the costs for future migrants which can in turn lower inequality this paper shows both theoretically and empirically that wealth has a nonlinear effect on migration and then examines the empirical evidence for an inverse u shaped relationship between emigration and inequality in rural sending communities in mexico after instrumenting we find that the overall impact of migration is to reduce inequality across communities with relatively high levels of past migration we also find some suggestive evidence for an inverse u shaped relationship among communities with a wider range of migration experiences

boom and bust patterns in the adoption of financial innovations we develop a dynamic model of the adoption of financial innovations each period firms decide whether or not to adopt an innovation of uncertain value and the profitability of each period s adoptions reveals information about the innovation s value we show that characteristics of financial innovation waves cited by critics as evidence of irrational excess are in fact consistent with fully rational behavior we also show that social welfare is enhanced when more firms adopt innovations of questionable value and that financial intermediaries base an incentive to encourage such adoption article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

migration networks and microenterprises in mexico are migration networks associated with lower capital costs or the alleviation of capital constraints we examine these questions with data measuring access to remittance flows among small scale entrepreneurs in mexico using a survey of more than 6000 self employed workers and small firm owners located in 44 urban areas of mexico we estimate the impact of attachment to migration networks on the level of capital investment the capital output ratio sales and profits of microenterprises the impact is identified from the geographic pattern of migration from mexico driven by the completion of rail lines in the early 1900s for the full sample of firms we find that migration is associated with higher investment levels and higher profits but not higher sales the strongest effects on investment are in the categories of automobiles tools and inventories when the sample is limited to firms in high capital sectors investment sales and profits all increase with attachment to the migration networks suggesting that attachment to the migration network alleviates capital constraints in those sectors

can a brain drain be good for growth in the source economy this paper analyzes the interaction between income distribution human capital accumulation and migration it shows that when migration is not a certainty a brain drain may increase average productivity and equality in the source economy even though average productivity is a positive function of past average levels of human capital in an economy it is also shown how the temporary possibility of emigration may permanently increase the average level of productivity of an economy

framing controversial actions regulatory focus source credibility and stock market reaction to poison pill adoption we contribute to the research on organizational accounts by examining the role of different framing languages and the credibility of the frame articulator on justifying controversial organizational actions drawing on regulatory focus theory and the literature on source credibility we develop novel arguments as to how a gains versus nonlosses framing and the perceived credibility of the speaker influence stakeholder responses as well as how the effectiveness of these aspects is influenced by context we test our arguments using data on the framing of the adoption of poison pills by u s firms between 1983 and 2008 using content analysis and an event study we find that a gains framing aligned with the dominant institutional logic leads to a positive stock market reaction while statements emanating from speakers with potentially self serving interests negatively affect the stock market reaction our findings further show that the effectiveness of framing and source credibility are dependent on contextual attributes such as speaker visibility prior performance and practice prevalence

incomplete information and the time series behaviour of consumption pischke 1995 uses both microeconomic and macroeconomic us data to test the idea that within an otherwise standard pih framework ignorance by agents of aggregate labour income can account for the observed degree of excess smoothness and sensitivity in consumption his tests involve only the second moments of aggregate consumption and labour income in this paper our main aim is to identify and test the restrictions his model implies for aggregate consumption dynamics using us quarterly data over the period 1959 1996 but our framework allows us also to test an earlier related model of goodfriend 1992 we find that both models can be formally rejected ignorance of aggregate labour income cannot by itself account for aggregate consumption dynamics some other relaxation of the assumptions of the standard pih is required we give an example of one possible such relaxation and present evidence indicating that pischke s version of imperfect information may within that framework have a significant role to play copyright 2000 john wiley sons ltd

do international migration and remittances reduce poverty in developing countries summary few studies have examined the impact of international migration and remittances on poverty in the developing world this paper fills this lacuna by constructing and analyzing a new data set on international migration remittances inequality and poverty from 71 developing countries the results show that both international migration and remittances significantly reduce the level depth and severity of poverty in the developing world after instrumenting for the possible endogeneity of international migration and controlling for various factors results suggest that on average a 10 increase in the share of international migrants in a country s population will lead to a 2 1 decline in the share of people living on less than 1 00 per person per day after instrumenting for the possible endogeneity of international remittances a similar 10 increase in per capita official international remittances will lead to a 3 5 decline in the share of people living in poverty

brain drain in globalization a general equilibrium analysis from the sending countries perspective according to the economic literature high skilled emigration may either harm or bene t developing economies recent research highlighted several positive and negative channels through which the brain drain operates this paper aims at evaluating the relative magnitudes of various brain drain channels and quantifying their global impact on migrants sending countries for this purpose we develop a 10 region general equilibrium model of the world economy characterized by overlapping generations dynamics our ndings suggest that the short run impact of brain drain on resident human capital is extremely crucial as it affects not only the number of high skilled workers available to domestic production but also the sending economy s capacity to innovate adopt modern technologies this latter effect is particularly important in globalization where capital investments are made in places with high production ef ciencies hence despite positive feedback effects those countries facing prevalent high skilled emigration are the most candid victims to brain drain

the effect of poison pill securities on shareholder wealth abstract this paper examines empirical evidence about the effect of poison pill takeover defenses on shareholder wealth i find evidence that announcements of the most restrictive forms of the pill defense are associated with stock price declines also the most restrictive forms of the pill defense are associated with abnormally high rates of defeat of unsolicited tender offers although this evidence is consistent with managerial entrenchment the evidence implies that on average poison pill defenses have seemingly had only a modest effect on firm valuation

why is consumption so smooth for thirty years it has been accepted that consumption is smooth because permanent income is smoother than measured income this paper considers the evidence for the contrary position that permanent income is in fact less smooth than measured income so that the smoothness of consumption cannot be straightforwardly explained by permanent income theory the paper argues that in postwar u s quarterly data consumption is smooth because it responds with a lag to changes in income

how golden parachutes unfolded diffusion and variation of a controversial practice we contribute to a growing focus on variation in diffusion processes by examining the ways in which contested practices are modified as they spread among adopters expanding on prior diffusion accounts we argue that the extensiveness and similarity of a practice will vary in response to both population and organization level mechanisms to examine these issues we study variation in golden parachute contracts a controversial corporate governance practice that emerged and spread widely during the hostile takeover wave of the 1980s using a concept network approach to analyze the composition of parachute plans we find evidence of mechanisms that both increase and decrease extensiveness and variation of golden parachutes our findings hold implications for accounts of practice diffusion over contested terrain by revealing substantial variation in the course of diffusion

the social construction of market value institutionalization and learning perspectives on stock market reactions this study advances a social constructionist view of financial market behavior the paper suggests that the market s reaction to particular corporate practices such as stock repurchase plans are not as financial economists contend simply a function of the inherent efficiency of such practices rather stock market reactions are also influenced by the prevailing institutional logic and the degree of institutionalization of the practice the theory first predicts that the emergence of the agency perspective on corporate governance in the mid 1980s represented a powerful new institutional logic that would lead the market to reverse its prior aggregate reaction to stock repurchase plans in the united states the paper then considers the potential for institutional decoupling of repurchase plans and develops competing hypotheses about how the market value of these policies might have changed as more firms formally adopted but did not implement the plans over time in contrast to a financial economic pers

globalization brain drain and development this paper reviews four decades of economics research on the brain drain with a focus on recent contributions and on development issues we first assess the magnitude intensity and determinants of the brain drain showing that brain drain or high skill migration is becoming a dominant pattern of international migration and a major aspect of globalization we then use a stylized growth model to analyze the various channels through which a brain drain affects the sending countries and review the evidence on these channels the recent empirical literature shows that high skill emigration need not deplete a country s human capital stock and can generate positive network externalities three case studies are also considered the african medical brain drain the exodus of european scientists to the united states and the role of the indian diaspora in the development of india s information technology sector we conclude with a discussion of the implications of the analysis for education immigration and international taxation policies in a global context

motives for private transfers over the life cycle an analytical framework and evidence for peru abstract this paper tests for the motives for private income transfers we consider two motives altruism and exchange the question of private transfer motives is important because such motivation can influence the effects of public income transfers on the distribution of income using a household survey for peru we find that transfer amounts received increase with recipient pre transfer income which contradicts a key prediction of the strong form of the altruism hypothesis but is consistent with exchange we also find that capital market imperfections are likely to be an important cause of private transfers and that social security benefits crowd out the incidence of private transfers

dynamic risksharing in the united states and europe abstract we use a panel var model to improve upon the existing methodologies to analyze interregional risksharing and consumption smoothing channels first we endogenize the output process within a more general multi equation framework capturing the dynamic feedback between output and various smoothing channels second in line with dynamic general equilibrium open economy models of risksharing we exploit impulse response functions to trace the role of each smoothing channel over time in the presence of different structural shocks temporary vs permanent and output vs smoothing channels in the application to the us and oecd countries we find different dynamic properties of different smoothing channels we compare our results with the predictions of standard risksharing and consumption theories and tackle some of the puzzles in the literature such as the international risksharing puzzle and the consumption output correlation puzzle we are also able to address such policy issues as whether fiscal stabilizers have been substitutes or complements for financial market diversification activities and whether further financial market integration is likely to provide countries with more shock absorption tools a key result is the strong substitutability between capital and credit smoothing in the us and between fiscal and credit smoothing in the oecd

international migration remittances and schooling evidence from el salvador abstract we examine the effect of remittances from abroad on households schooling decisions using data for el salvador following the massive war related emigration of the 1980s remittances became a significant source of household income throughout the 1990s we use the cox proportional hazard model to examine the determinants of school attendance measuring income from a source that is uncorrelated with parental schooling remittances we find that remittances have a large significant effect on school retention we estimate that while household income net of remittances has a small though significant impact on the hazard of leaving school in rural and urban areas remittances have a much larger impact on the hazard of leaving school in urban areas the effect of remittances is at its smallest 10 times the size of the effect of other income in rural areas the effect of remittances is about 2 6 times that of other income our finding is of interest in that it suggests that subsidizing school attendance particularly in poor areas may have a large impact on school attendance and retention even if parents have low levels of schooling

remittances and the brain drain revisited the microdata show that more educated migrants remit more two of the most salient trends in migration and development over the last two decades are the large rise in remittances and in the flow of skilled migrants however recent literature based on cross country regressions has claimed that more educated migrants remit less leading to concerns that further increases in skilled migration will impede remittance growth micro data from surveys of immigrants in 11 major destination countries are used to revisit the relationship between education and remitting behavior the data show a mixed pattern between education and the likelihood of remitting and a strong positive relationship between education and amount remitted intensive margin conditional on remitting at all extensive margin combining these intensive and extensive margins yields an overall positive effect of education on the amount remitted for the pooled sample with heterogeneous results across destinations the micro data allow investigation of why the more educated remit more showing that the higher income earned by migrants rather than family characteristics explains much of the higher remittances migration brain drain and education

large shareholders and the monitoring of managers the case of antitakeover charter amendments this paper examines the role of large shareholders in monitoring managers when they propose antitakeover charter amendments we attempt to distinguish between two competing hypotheses the active monitoring hypothesis and the passive voting hypothesis we find a statistically significant positive relation between institutional ownership and the stockholder wealth effects of various types of amendments after controlling for ownership concentration among institutions managerial ownership and firm size our empirical evidence lends support to the active monitoring hypothesis proposed by demsetz 1983 and shleifer and vishny 1986 that the existence of large shareholders leads to better monitoring of managers

motives for private income transfers private income transfers are becoming increasingly recognized as a key aspect of the u s economy the majority of private income transfers occur inter vivos i e between living persons but very little is known about this type of transfer behavior this paper tests alternative hypotheses concerning motivation for inter vivos transfers two motives are considered altruism and exchange evidence presented here casts doubt on the altruistic model of transfer behavior observed patterns for inter vivos transfers are more consistent with exchange related motives this finding has important implications for the effects of public transfer programs on the distribution of economic well being

what is the impact of international remittances on poverty and inequality in latin america workers remittances have become a major source of income for developing countries however little is still known about their impact on poverty and inequality using a large cross country panel dataset the authors find that remittances in latin american and caribbean lac countries have increased growth and reduced inequality and poverty these results are robust to the use of different instruments that attempt to correct for the potential endogeneity of remittances household survey based estimates for 10 lac countries confirm that remittances have negative albeit relatively small inequality and poverty reducing effects even after imputations for the potential home earnings of migrants

corporate takeovers the efficiency arguments in recent years the tender offer takeover has been praised and damned with a ferocity suggesting that the survival of capitalism is at stake the truth as in most disputes with substantial metaphysical content is more prosaic some takeovers enhance economic efficiency some degrade it and the balance of effects though not fully known is most likely a close one in this essay i try to lay bare the debate s foundations and bring it back to earth with an injection of evidence

takeover threats and managerial myopia this paper examines the familiar argument that takeover pressure can be damaging because it leads managers to sacrifice long term interests in order to boost current profits if stockholders are imperfectly informed temporarily low earnings may cause the stock to become undervalued increasing the likelihood of a takeover at an unfavorable price hence the managerial concern with current bottom line the magnitude of the problem depends on a variety of factors including the attitudes and beliefs of shareholders the extent to which corporate raiders have inside information and the degree to which managers are concerned with retaining control of their firms

social network effects on the extent of innovation diffusion a computer simulation of innovation diffusion no longer focus exclusively on explaining the rate at which innovations diffuse or the sequence in which they are adopted they also focus on explaining why certain innovations diffuse extensively be coming de facto standards whereas others do so partially or not at all many of these theories specify a bandwagon process a positive feedback loop in which increases in the number of adopters create stronger bandwagon pressures and stronger bandwagon pressures in turn cause increases in the number of adopters factors affecting if and how many times this feedback loop cycles explain if and how many potential adopters jump on a bandwagon we argue that one important factor has not yet been incorporated into theories explaining bandwagons extent the structure of social net works through which potential adopters of innovations find out information about these innovations which can cause them to adopt these innovations we advance a theory of how the structure of social networks affects bandwagons extent we propose that both the number of network links as well as small seemingly insignificant idiosyncracies of their structures can have very large effects on the extent of an innovation s diffusion among members of a social network

event studies in management research theoretical and empirical issues we examined the use of event studies in management research and found that there was inadequate attention paid to theoretical and research design issues this lack of attention may lead to false in

remittances and temporary migration in this paper we study the remittance behavior of immigrants and how it relates to temporary versus permanent migration plans we use a unique data source that provides unusual detail on remittances and return plans and follows the same household over time our data allows us also to distinguish between different purposes of remittances we analyze the association between individual and household characteristics and the geographic location of the family as well as return plans and remittances the panel nature of our data allows us to condition on household fixed effects to address measurement error and reverse causality we use an instrumental variable estimator our results show that changes in return plans are related to large changes in remittance flows

migration remittances and inequality estimating the net effects of migration on income distribution this paper examines the net effects of migration and remittances on income distribution potential home earnings of migrants are imputed as are the earnings of non migrants in migrant households in order to construct no migration counterfacmals to compare with the observed income distribution including remittances the earnings functions used to impute migrant home earnings are estimated from observations on non migrants in a selection corrected estimation framework which incorporates migration choice and labor force participation decisions for a sample of households in bluefields nicaragua migration and remittances increase income inequality when compared with the no migration counterfactual 1998 elsevier science b v

ceos outside employment opportunities and the lack of relative performance evaluation in compensation contracts although agency theory suggests that firms should index executive compensation to remove market wide effects i e rpe there is little evidence to support this theory oyer 2004 journal of finance 59 1619 1649 posits that an absence of rpe is optimal if the ceo s reservation wages from outside employment opportunities vary with the economy s fortunes we directly test and find support for oyer s 2004 theory we argue that the ceo s outside opportunities depend on his talent as proxied by the ceo s financial press visibility and his firm s industry adjusted roa our results are robust to alternate explanations such as managerial skimming oligopoly and asymmetric benchmarking

takeover defenses and wealth effects on securityholders the case of poison pill adoptions abstract this is the first study to examine the valuation effects of any antitakeover amendment on both bondholders and stockholders we present new evidence documenting that on average there is a significant wealth loss experienced by bondholders at poison pill adoption announcement while stockholders are unaffected our finding of significant bondholder losses is consistent with the proposed negative signal hypothesis we document results which indicate that bondholders correctly anticipate the degree of leverage increase at the time of the announcement we also show that the proportion of insider ownership is negatively related to bondholder wealth effect at announcement this supports the notion that higher insider manager ownership leads to a greater alignment of manager stockholder interests while increasing the stockholder bondholder agency costs long run analysis of leverage and performance measures reveal that pill adopting firms are not under leveraged as compared to their industry rivals however supporting the negative signal hypothesis the leverage of sample firms rises significantly after the pill adoption performance measures reveal that sample firms significantly underperform their industry cohorts this result suggests that poison pill adoptions are motivated by poor managers attempting to immunize themselves from the disciplinary actions of the corporate control market

remittances and the brain drain do more skilled migrants remit more in most destination countries immigration policies are tilted more and more in favor of skilled individuals whether this shift hurts economic prospects in sending countries as argued by the traditional brain drain literature is somewhat controversial the most recent literature focuses on the link between skilled outmigration and educational achievements in the home country this article emphasizes a different channel it considers the argument that skilled migrants raise economic welfare at home by sending a relatively larger flow of remittances while skilled migrants typically earn more and so might be expected to remit more they are also likely to spend more time abroad and to reunite with their close family in the host country these second two factors should be associated with a smaller propensity to remit thus the sign of the impact of the brain drain on total remittances is an empirical question a simple model has been developed showing that skilled migrants may indeed have a lower propensity to remit from a given flow of earnings an empirical equation of remittances is estimated as a measure of the brain drain in developing countries using the docquier and marfouk 2004 data set evidence is found that the brain drain is associated with a smaller propensity to remit

the deaton paradox in a long memory context with structural breaks this article contributes to the permanent income hypothesis pih and excess consumption smoothness debate in the context of fractional integration we show that the excess consumption smoothness result is a consequence of the quarterly data frequency commonly employed in the empirical work in fact the i 1 hypothesis is rejected for the income process with monthly data in favour of a fractional integration order lower than 1 moreover if a structural break is taken into account we observe a substantial reduction in the degree of consumption smoothness especially after the break found in 1975

revisiting the brain drain literature with insights from a dynamic general equilibrium world model the existing brain drain literature has found various mechanisms through which the high skilled south to north migration affects developing economies however some of the new found effects remain disputable due to limited evidence this study aimed to provide suggestive guidelines for future research by identifying the mechanisms that can generate larger economic impacts at the aggregate the analysis is based on a dynamic general equilibrium world model that is calibrated to published statistics and incorporates empirical estimates on the effects of brain drain it simulates short and long run impacts of increased brain drain on gdp per capita gni per capita and income inequality the results suggest that more studies should be conducted to further examine how the brain drain influences human capital formation and technology spillovers both have significant impacts on domestic production and national income a better understanding of different remitting patterns is also desirable to understand how to reduce inequality and promote recipients investment in productive assets

a true american system of finance frame resonance in the u s labor movement 1866 to 1886 principles and philosophy 1 revolutionary american rhetoric the gold standard is associated with aristocracy kings landlords privilege inequality before the law monied aristocracy 46 18 8 2 gold standard gives control of government to bankers financiers bondholders 21 8 6 3 democrats and republicans are both corrupt 35 14 3 4 reference to jefferson 4 1 6 5 reference to jackson or locofocoism 5 2 0 6 gold standard leads to slavery free labor 11 4 5 7 small ownership or middle class is good wage labor is bad 7 2 9 8 growing polarization between rich and poor is bad 13 5 3 9 a strikes are bad should be used as a last resort 11 4 5 b strikes are good necessary 0 0 10 a we don t threaten property only future accumulations i e interest payments 4 1 6 b we threaten property 0 0 specific program and demands 11 free soil land to those willing to till it 21 8 6 12 support for co ops 20 8 2 13 support for 8 hour movement 14 5 7 14 we need a fairer tax system don t exempt bondholders 27 11 0 why workingmen should support greenbacks 15 greenbacks won t hurt workers through inflation because wartime greenbacks which depreciated weren t real greenbacks 4 1 6 16 greenbacks will make co ops possible 2 8 17 greenbacks should be used to create employment through public works government employment 3 1 2 18 greenbacks are good for workers because workers are debtors 2 8