the impact of nationalism patriotism and internationalism on consumer ethnocentric tendencies the study investigates the impact of patriotism nationalism and internationalism as antecedents to consumer ethnocentrism in turkey and the czech republic controlling for demographics the findings indicate that the impact of patriotism and nationalism is not consistent across the two countries consumer ethnocentrism in turkey is fueled by patriotism and in the czech republic by nationalism internationalism does not have a significant effect on consumer ethnocentrism in either country managerial implications of these findings are considered and future research directions are identified

the political economy of bilateral bailouts imf loans during times of financial crisis often occur in conjunction with bilateral financial rescues these bilateral bailouts are substantial in size and a central component of international cooperation during financial crises we analyze the political economy of bilateral bailouts and study the trade offs that potential creditor governments experience when other countries find themselves in financial distress creditor governments want to stabilize crisis countries by providing additional liquidity particularly if the crisis country is economically or politically important to them but they are constrained by domestic politics politicians aim to balance these countervailing pressures they provide bailouts when their own economy is exposed to negative spillover effects and when the crisis country is important for geostrategic military or political reasons domestic economic and political constraints on the other hand limit their ability to bail out other countries we test our hypotheses using an original data set on bilateral bailouts by the g7 countries to countries that experienced financial crises between 1975 and 2010 the findings of our statistical analysis support our theoretical argument and contribute to a deeper understanding of international cooperation s complex structure during financial crises

some nonlinear tax effects on asset values and investment decisions under uncertainty abstract tax system nonlinearities are often ignored but with uncertainty may have important implications for the magnitude and direction of tax effects this paper studies a particular nonlinear tax rule the policy subsidizes asset values but may discourage some investments and encourage earlier shutdown of some projects the marginal effective tax rate varies with project risk furthermore a corporate cash flow tax can encourage investment due to interactions with the nonlinear policy the paper also presents a general statement of the stochastic equilibrium valuation method which can be used to analyze other nonlinear taxes numerical examples demonstrate computational feasibility

preferential trading arrangements as strategic positioning abstract we analyze a three country model of trade negotiations in which countries can form bilateral free trade areas bilateral customs unions or a trilateral preferential trading arrangement and can continue negotiating after reaching an agreement in contrast to the literature on multilateral bargaining the set of agreements can form a nonpartitional network while in contrast to the network literature players can reach multilateral agreements patient enough countries only reach bilateral agreements if insiders gain more than outsiders which allows them to manipulate the status quo in subsequent negotiations however a hub and spoke pattern may then emerge and insiders then dissipate the advantages of strategic positioning we also use variants on the model to explain why a us commitment not to bargain bilaterally sustained progress at gatt negotiations and the rarity of open access preferential trading arrangements

modeling international climate change negotiations more responsibly can highly simplified game theory models provide reliable policy insights abstract in a recent article in this journal entitled game theory and climate diplomacy decanio and fremstad 2013 provide an interesting treatment of a range of simple game theoretic characterizations of international climate negotiations the authors use the nash and maxi min stability definitions to analyze 25 two by two ordinal games which they recognize as possible game theoretic characterizations of climate negotiations between two players e g great powers or coalitions of states the authors main conclusion that the prisoner s dilemma might not be the best description of climate negotiations game is consistent with the findings of others who have studied two by two conflicts over natural commons bardhan 1993 madani 2010 sandler 1992 taylor 1987 nevertheless given the importance of the climate change issue as well as the potential effects of our actions on the state of the environment and the well being of future generations i would like to address some gaps in their analysis which result in it having limited usefulness for policy purposes of course all models are simplified representations of reality full of limitations essentially all models are wrong but some are useful box and draper 1987 so the practical question is how wrong do they have to be to not be useful box and draper 1987 models limitations need to be carefully considered when interpreting them or applying their results to policy but some models are too simple to provide useful policy advice

global growth and international cooperation a structuralist perspective this paper revisits the structuralist ideas on trade and growth and suggests based on the prebisch s principle of implicit reciprocity that policies for promoting structural change in the periphery may lead to higher global growth and a better income distribution across countries the paper discusses the inter relations and complementarities that exist between autonomous expenditure and industrial and technology policies in the long run with this objective we develop a structuralist growth model in which the technology gap and the growth rate of the domestic autonomous expenditure are endogenously determined in a two country centre and periphery international economy copyright the author 2010 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

structural change and the bop constraint why did latin america fail to converge this paper discusses why latin america failed to achieve sustainable convergence with the developed world since 1960 and analyses different phases of convergence and divergence using a structuralist keynesian approach first it is argued that there are critical differences between latin america the developed economies and the asian economies as regards the evolution of the income elasticity of the demand for imports the rate of growth of exports and the balance of payments constrained rate of growth the income elasticity of the demand for imports in latin america showed an upward trend particularly after the mid 1970s which was not matched by a similar increase in exports a pattern in sharp contrast with that of the east asian countries the evolution of and exports are used to set forth a typology of latin american economic growth since 1960 in addition the paper relates elasticities and the less favourable latin american performance to the intensity and direction of structural change using a broad sample of developed and developing economies it is shown that the developing countries that succeed in reducing the income gap are those that transformed their economic structures in favour of sectors with higher schumpeterian and keynesian efficiency copyright the author 2009 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

game theory and climate diplomacy abstract starting with the new periodic table npt of 2 2 order games introduced by robinson and goforth 2005 we provide an exhaustive treatment of the possible game theoretic characterizations of climate negotiations between two players e g great powers or coalitions of states of the 144 distinct 2 2 games in which the players have strict ordinally ranked utilities 25 are potentially relevant to climate problem the negotiations may be characterized as a no conflict game prisoner s dilemma coordination game chicken type game or cycle depending on the payoff matrix which game corresponds to the actual state of the world depends both on the severity of risks associated with climate change and the perceptions of the governments engaged in the negotiations nash equilibrium or maxi min equilibrium or neither may be the outcome achieving universal abatement of greenhouse gas emissions may require side payments or enforcement mechanisms outside the game framework but we show how the negotiations themselves may offer opportunities to select between nash equilibria or alter the payoff rankings and strategic choices of the players in particular scientific information pointing to the severity of the risks of climate change suggests characterization of the negotiations as a coordination game rather than a prisoner s dilemma

towards a more ethically correct governance for economic sustainability in this paper we propose that economic sustainability is seen in terms of inter temporal and inter national value creation we claim that value appropriation or capture can become a constraint to economic sustainability we propose that for sustainable value creation to be fostered corporate governance needs to be aligned to public and supra national governance in order to achieve this a hierarchically layered set of agencies needs to be diagnosed and the issue of incentive alignment addressed enlightened self interest pluralism and diversity as well as a representative supra national organisation for world wide economic sustainability can serve as a new more ethically correct governance for economic sustainability but not a panacea

an analysis of the climate change architecture abstract this paper examines the complexity of the current negotiations to avert climate change under the united nations framework convention on climate change drawing on economic game theory modelling it interprets the latest developments within the international negotiations and provides a political economy analysis of the climate change architecture it places the pursuit of international co operation via the kyoto protocol s second commitment period in the context of a country s maintenance of national interest and a flexible emissions abatement strategy accepting that countries will reject an international agreement or obligation that is seen as inimical to their economic competitiveness it incorporates a new game theory model considers how learning from such models can influence agreement design and proposes a new approach from a non monotonic polluting payoff function attention is placed on enabling conditions that entice countries to ratify a climate agreement thereby encouraging participation and accelerating a near term deployment of low carbon technologies

valuing life experimental evidence using sensitivity to rare events global environmental phenomena like climate change major extinction events or flutype pandemics can have catastrophic consequences by properly assessing the outcomes involved especially those concerning human life economic theory of choice under uncertainty is expected to help people take the best decision however the widely used expected utility theory values life in terms of the low probability of death someone would be willing to accept in order to receive extra payment common sense and experimental evidence refute this way of valuing life and here we provide experimental evidence of people s unwillingness to accept a low probability of death contrary to expected utility predictions this work uses new axioms of choice defined by chichilnisky 2000 especially an axiom that allows extreme responses to extreme events and the choice criterion that they imply the implied decision criteria are a combination of expected utility with extreme responses and seem more consistent with observations

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

the implications of risk and irreversibility for the measurement of marginal effective tax rates on capital the implications of risk and irreversibility for the measurement of marginal effective tax rates on capital are examined it is shown that when capital is irreversible the marginal effective tax rate is an increasing function of systematic and unsystematic capital and income risk the tax system may thus distort investments in risky capital to a much greater extent than is implied by previous research that ignored irreversibilities marginal effective tax rate calculations based upon the canadian corporate tax system are provided

theoretical justification of sampling choices in international marketing research key issues and guidelines for researchers sampling in the international environment needs to satisfy the same requirements as sampling in the domestic environment but there are additional issues to consider such as the need to balance within country representativeness with cross national comparability however most international marketing research studies fail to provide theoretical justification for their choice of sampling approach this is because research design theory and sampling theory have not been well integrated in the context of international research this paper seeks to fill the gap by developing a framework for determining a sampling approach in international studies the framework is based on an assessment of the way in which sampling affects the validity of research results and shows how different research objectives impact upon a the desired sampling method and b the desired sample characteristics the aim is to provide researchers with operational guidance in choosing a sampling approach that is theoretically appropriate to their particular research aims

international taxation the trajectory of an idea from lorimer to brandt abstract this paper examines early proposals for the establishment of international taxes for the support of international organization for the maintenance of international order and or for development the writings examined span close to one century starting with james lorimer in 1884 and concluding with the report of the brandt commission in 1980 our focus is on works mainly written since 1940 which explore the possibility of taxation levied by a global authority on income and transactions of individuals and firms rather than the financing of aid and international organization by national governments which is sometimes regarded as equivalent to taxation

shifting mne taxation from national to global profits a radical reform long overdue the current separate accounting taxation of corporations gives governments the right to tax the national incomes of firms operating within their borders however multinational and increasingly digital business models beg the question what is national taxable income we argue that a radical rethink of the corporate taxation moving away from a separate taxation of national corporate income to a taxation of global corporate income allocated via formula apportionment is long overdue global corporate income as a basis for taxation is supported both by recent theoretical developments and corroborating empirical evidence with the eu and emerging economies including china already considering its adoption nor is it new as we relate formula apportionment of global corporate income was used a century ago before commercial and political interests promoted separate accounting thereby providing both precedent and experience to inform its re adoption

a cross national assessment of the values of latin america managers contrasting hues or shades of gray we draw upon studies from the social sciences to develop and test hypotheses about similarities and differences in the importance of values among managers in 12 latin american countries using the rokeach value survey data from 1015 owner managers of small businesses indicated convergence among values relating to group interests but significant variation among values serving individual interests in addition several groups of countries were identified as culturally similar whereas brazil and mexico remained culturally discrete the results suggest that common perceptions of latin america as a culturally homogeneous region are stereotypical and incorrect and that divergence in the importance of values can explain differences in business phenomena across the region

can swap line arrangements help solve the triffin dilemma how the recent massive rise in the currency reserves of emerging countries has once again brought the triffin dilemma to the fore albeit different to the past at all the events new tools for the creation of international liquidity emerged during the global financial crisis of 2007 08 including bilateral swap line arrangements bsas these arrangements ultimately constitute a form of lending of last resort therefore for emerging countries they can substitute currency reserves and help resolve the triffin dilemma in this manner the stipulation of bsas by advanced countries although motivated by domestic reasons contributes to international financial stability providing access to these arrangements automatically would contradict the principle of constructive ambiguity and the discretion that should be at the base of the lending of last resort also at the international level

successful leadership in global public good provision incorporating behavioural approaches in the standard model of voluntary public good provision and other game theoretic models climate friendly leadership of a country is not successful a unilateral increase of this country s greenhouse gas abatement measures i e contributions to the global public good of climate protection will not lead to a positive reaction by the other countries but instead trigger a reduction of their abatement efforts and thus a crowding out effect in this paper it is shown how this undesired consequence need no longer occur when elements of behavioral economics are incorporated in the otherwise standard model of public good provision in particular strategic complementarities between the public good contribution of the leading country and those of the follower may result either if the follower has specific non egoistic or other regarding preferences or if the leader s contribution positively affects the follower s beliefs i e his conjectural variations about the leader s behaviour

green investment and coordination failure an investors perspective abstract to achieve the goal of keeping global warming well below 2 c private investors have to shift capital from brown to green infrastructures and technologies and provide additional green investment in this paper we present a game theoretic perspective on the challenge of triggering such investments the question of climate change mitigation is often related to the prisoner s dilemma a game with one nash equilibrium however the authors perceive investment for mitigation and adaptation as a coordination problem of selecting among multiple equilibria to illustrate this we model a non cooperative coordination game related to the stag hunt with a brown equilibrium with lower payoffs that can be achieved single handedly and a green equilibrium with higher payoffs that requires coordination as multiple experiments show in such games actors often fail to coordinate on a payoff dominant equilibrium due to uncertainty thus we discuss how uncertainty could be reduced along two options one that concerns a change in the payoff structure of the game and another that concerns subjective probabilities

diagnosing measurement equivalence in cross national research many researchers have pointed out that it is necessary to ensure measurement equivalence in cross national comparative research three aspects of measurement equivalence translation metric and calibration equivalence are necessary to establish the cross national reliability and validity of items used to measure theoretical constructs this paper discusses these issues and proposes two recently developed empirical techniques multiple group lisrel and optimal scaling for use in diagnosing cross national measurement equivalence these techniques are illustrated by reanalysis of a pioneering u s and japanese study the two techniques yield convergent results indicating measurement equivalence for some but not all ordinal level items under consideration the findings demonstrate that the proposed methods are useful diagnostic tools for exploring measurement equivalence several suggestions for reducing the likelihood of problems with measurement equivalence and a number of methods for dealing with items where lack of equivalence persists are also discussed

the impact of bad writing in economics we find significant style differences between articles written by economists for their professional journals and articles by the same economists in the wall street journal we find no evidence that style influences the professional success of economists which suggests that the private rewards to improving the quality of writing are low indeed each community of scholars has probably adopted a professionally correct writing style from which its members diverge little however scholars do alter their rhetorical style to communicate effectively with audiences other than the professional community this suggests that intra and inter group written communication by economists is efficient

national context and individual employees trust of the out group the role of societal trust out group trust is a crucial driver of international business performance however employees from different countries vary in their levels of out group trust the aim of this study is therefore to capture national forces driving out group trust based on kramer s theorizing on the multiple bases of trust we argue that at the societal level dispositional categorization based and rule based trust influence employees out group trust in particular we argue for dispositional and rule based societal trust to increase and for categorization based societal trust to decrease employees out group trust through different types of socialization using data on 25 622 employees from 42 countries we find partial support for the coexistence of these bases of societal trust disentangling trust forming and trust impeding models we find support for dispositional and rule based societal trust as drivers of employees out group trust and for categorization based societal trust as impeding employees out group trust in a combined model however rule based trust is not significantly related to employees out group trust considering the coexistence of trust and distrust employees out group trust develops through socialization effects conveying general trust in others i e high dispositional trust and the equality of social groups i e low categorization based trust

ben bernanke and bagehot s rules former federal reserve chairman ben bernanke has claimed that the fed s bank bailouts during the 2008 financial crisis were consistent with walter bagehot s rules for a lender of last resort this paper demonstrates bernanke s claims to be mistaken first we outline bagehot s doctrine for a classical lender of last resort next we discuss bernanke s theory of bank bailouts and his statements regarding the fed s role in the 2008 bank bailouts finally we examine the bailouts and demonstrate that contrary to bernanke s claims the fed s actions were not consistent with bagehot s rules for a lender of last resort

adverse selection investment and profit taxation abstract this article introduces government revenue requirements and attendant taxation into a financial market model with informed borrowers entrepreneurs and uninformed lenders it finds that 1 in general an allocationally neutral proportional profit tax yields an equilibrium which is constrained inefficient despite the constrained efficiency of the no tax equilibrium 2 many constrained efficient allocations can only be supported by a profit tax regime which depends on the entrepreneur s investment choice and thus which is tantamount to direct intervention in the financial market and 3 some first best allocations can be supported by an investment invariant tax regime which includes a proportional profit tax and a positive fixed transfer

examining the cross national applicability of multi item multi dimensional measures using generalizability theory establishing the applicability of multi item measures is important for making valid inferences when testing theories cross nationally typically researchers have relied upon the tenets of classical measurement theory ct using confirmatory factor model invariance testing to conclude that a unidimensional measure is applicable across countries however two important issues remain unresolved via ct techniques 1 if the measure is found not to be invariant ct tells us little as to why the measure varies across countries and 2 if the measure is multi dimensional what factors affect its cross national applicability our research seeks to address these issues and the cross national measurement applicability of multi dimensional scales via generalizability theory gt in this paper we use a cross national data set and simulated data sets to demonstrate the usefulness of gt to cross national multi dimensional measurement

measuring the efficiency cost of wage taxation with uncertain labor productivity abstract estimates of the marginal efficiency cost of wage taxation can vary between 7 and 21 of revenues raised using a consistent definition eliminates much of the variability in these estimates however all studies carried out evaluate the marginal efficiency cost within a certainty framework the inclusion of uncertain labor productivity dramatically changes the efficiency loss measurement by affecting the marginal utility of lump sum income and consequently altering the marginal efficiency cost of a tax change

developing countries and mnes extending and enriching the research agenda foreign direct investment fdi through multinational enterprises mnes has emerged in the last decade as the principal source of foreign capital for developing countries meyer this issue underlines the need for international business ib scholars to understand the impact of these investments on host developing countries he offers a useful assessment of the literature and proposes a rich set of questions for further research however his research agenda can be extended and enriched in two ways first ib scholars must study as they always have causation in the opposite direction namely the impact of developing country context on mne behavior and the co evolution of these two variables over time in doing so they must incorporate into their models contemporary issues such as the continued inadequacy of rules for fdi in infrastructure sectors or the clever means by which mnes are rewriting the global rules under which they operate in developing countries e g on intellectual property rights second ib scholars must pay more attention to topics that are not mainstream within the field but are of great importance to developing countries examples include the behavior and performance of a new generation of home grown mnes the role of diaspora in homeland fdi in countries like china and india and the implications of global outsourcing of services

two cases for sand in the wheels of international finance the incompatibility of pegged exchange rates international capital mobility and national monetary autonomy is a basic postulate of open economy macroeconomies in the present environment of high capital mobility and political uncertainty even the possibility that governments may utilize their policy autonomy can defeat efforts to peg the exchange rate this leaves two possibilities one is to fix the exchange rate irrevocably through monetary unification the other is to live with floating rates either way a case can be made for throwing sand in the wheels of international finance where monetary unification is not an option this is a may to make distinct national currencies tolerable and international money and capital markets compatible with modest national autonomy in monetary and macroeconomic policy for eu counties striving to create a monetary union it is the only politically and economically feasible way of completing the transition to stage iii of the maastricht process

measuring the efficiency cost of taxing risky capital income this paper derives a measure of the efficiency cost of taxing risky capital income in an infinite horizon stochastic model the resulting expression differs from all those proposed in the existing literature the correct measure of efficiency cost will normally be smaller than any of those used in policy studies possibly dramatically so uncertainty changes the expression for efficiency cost through effects arising not only from stochastic capital gains on existing capital but also from stochastic costs of replacing existing capital the latter effect reduces efficiency costs and normally outweighs the first effect copyright 1989 by american economic association

international cooperation during the covid 19 pandemic this paper explores the concept of global public goods gpgs in the context of the ongoing covid 19 pandemic it argues that many of the tasks involved in public health and in particular those involved in the control of an infectious disease like covid 19 ought to be treated as gpgs that can only be effectively delivered through international cooperation it sets out what a cooperative response to the covid 19 pandemic should look like and introduces ideas for further discussion about how it might be financed

the marginal welfare cost of capital taxation discounting matters we interpret the marginal welfare cost of capital income taxes as the present discounted value of consumption distortions such an asset market interpretation emphasizes the importance of the interest rate used to value future distortions especially in the presence of uncertainty we find that the interest rate decreases as the tax rate increases thus increasing the welfare cost the variations in the interest rate are caused by amplified responses of consumption to exogenous shocks as a result of capital taxation the welfare cost may be underestimated if variations in interest rates are ignored especially when tax rates are high

the welfare cost of factor taxation in a perfect foresight model this paper examines the marginal efficiency cost of various factor taxes in a dynamic general equilibrium model the au thor solves for the excess burden of anticipated and unanticipated t emporary and permanent tax policies using a range of estimates for taste and technology parameters he finds excess burdens larger than those indicated by previous studies that use static models these exc ess burdens are sensitive to parameter values and timing however th e rankings of alternative tax policies turn out to be insensitive to structural parameter values copyright 1987 by university of chicago press

from turmoil to crisis dislocations in the fx swap market before and after the failure of lehman brothers abstract this paper investigates dislocations in the foreign exchange fx swap market between the us dollar and three major european currencies after the failure of lehman brothers in september 2008 deviations from covered interest parity cip were negatively associated with the creditworthiness of us financial institutions as well as that of european institutions consistent with the deepening of a dollar liquidity problem into a global phenomenon us dollar term funding auctions by the ecb snb and boe as well as the us federal reserve commitment to provide unlimited dollar swap lines are found to have ameliorated the fx swap market dislocations

tenure issues in higher education the system of tenure that dominates american higher education has long been a source of controversy the institution of tenure has been attacked for entrenching a lazy professoriate more interested in attending faraway conferences and producing unreadable research than in teaching or developing practical insights while on the other hand it has long been defended as an absolute necessity for the defense of open intellectual inquiry the tenure controversy has been sharpened in recent years by several events the end of mandatory retirement which was abolished by federal law effective january 1 1994 has heightened concerns about the productivity and commitment of professors who received tenure long ago and who no longer have the same incentives to invest in long term reputation there is also ongoing concern over the steadily rising cost of higher education which raises the question of what students as well as the taxpayers who support public institutions of higher education are getting for their money 1 the idea that tenure is a wasteful institution for universities runs up against the puzzling fact that the commitment to tenure is one that academic institutions impose on themselves although the american association of university professors aaup provides a powerful lobby in favor of tenure generally colleges and universities most notably private ones are under no legal requirement to observe tenure constraints although as administrators we certainly feel the weight of those constraints our view is that a tenure system in fact provides important benefits to society and to colleges and universities we argue here that the role of tenure is

the impact of societal cultural values and individual social beliefs on the perceived effectiveness of managerial influence strategies a meso approach this paper reports the findings of a 12 nation study designed to test empirically the relationships between societal cultural values individual social beliefs and the perceived effectiveness of different influence strategies the relationships between three types of broad influence strategy persuasive assertive and relationship based and four dimensions of individual beliefs cynicism fate control reward for application and religiosity were examined three of project globe s cultural values in group collectivism uncertainty avoidance and future orientation were selected to investigate their direct effects on the rated effectiveness of influence strategies and their possible interaction with dimensions of individual beliefs results showed that different dimensions of individual social beliefs predict the perceived effectiveness of the three types of influence strategy and that cultural values can moderate the strength of the relationship between these dimensions of individual social beliefs and the perceived effectiveness of influence strategies

on modeling and interpreting the economics of catastrophic climate change with climate change as prototype example this paper analyzes the implications of structural uncertainty for the economics of low probability high impact catastrophes even when updated by bayesian learning uncertain structural parameters induce a critical tail fattening of posterior predictive distributions such fattened tails have strong im plications for situations like climate change where a catastrophe is theoretically possible because prior knowledge cannot place sufficiently narrow bounds on overall damages this paper shows that the economic consequences of fat tailed structural uncertainty along with unsureness about high temperature damages can readily outweigh the effects of discounting in climate change policy analysis

cross national differences in computer use ethics a nine country study this study examines computer use ethics among nine countries singapore hong kong united states great britain australia sweden wales and the netherlands based on paradice 1990 an instrument was developed containing three scales focusing on ethical attitudes toward software license infringement use of virus programs and misuse of corporate computing resources analysis indicates that there are significant differences in ethical values among nationalities for each of these scales