Volkswirtschaft - Open Access LMU - Teil 01/03 Archiv

Globalization has been identified by many experts as a new way firms organize their activities and as the emergence of talent as the new stakeholder in the firm. This paper examines the role of trade integration for the changing nature of the corporation. International trade leads to a 'war for talent' which makes it more likely that an organizational equilibrium emerges in the integrated world economy in which control is delegated to lower levels of the firms' hierarchy empowering human capital. Furthermore, trade integration is shown to lead to waves of outsourcing and to convergence in corporate cultures across countries.

The paper compares non-cooperative commodity taxation under the destination and origin principles under a variety of different assumptions about market structure. We consider a model of international duopoly with either quantity or price competition of firms and either segmented or integrated markets, and a monopolistic competition model with mobile firms. In each setting the international spillovers of tax policy are isolated and evaluated at the Pareto efficient tax rate. The sign of the net spillover, and thus the direction that commodity tax competition will take, depends critically on whether lump-sum taxes are available or commodity taxes must be used to finance the government budget.

This paper analyzes the effects of a potential spillover on technology transfer of a multinational enterprise and on the host country policy. In particular, we examine how both parties' incentives can be controlled through the ownership structure in an international joint venture. In contrast to existing arguments we show that spillovers must not always have negative effects on technology transfer and they may be efficiency improving. Moreover, there are circumstances where a joint venture is mutually beneficial. Surprisingly, however, we find that despite the prospect of spillovers a joint venture is sometimes not in the interest of a host country.

Three subsequent years of the October Household Survey data are used to construct a synthetic panel. Preparing cross sectional data that way allows to better utilise individual information and to address temporal developments also in the absence of genuine panel data. This paper focuses on gender and race specific cohort wages. Average earnings of birth cohorts of African and White workers employed full-time in formal sector jobs are followed over time and wage differentials as well as the mobility of cohort wages are studied in detail. A decomposition of African cohort wages into age, cohort, and year effects gives information about the existence of cohort effects. Results suggest that especially for African women such generational trends may differ from the theoretical expectation. However, to arrive at assured results a greater number of periods is needed.

Razin and Sadka (1999) show that unskilled immigration is beneficial to all income and all age groups in society, even if immigrants are net beneficiaries of the welfare system. Among other things, this result rests on the assumptions that immigrants have the same reproduction rate as the native population and that the immigrants' offspring has the same distribution of skills as the natives' offspring. By relaxing these assumptions, we show that the Razin and Sadka result is no longer unambiguous.

Within the course of the 20th century the American population went through a metamorphosis from being the tallest in the world, to being among the most overweight. The American height advantage over Western and Northern Europeans was between 3 and 9 cm in the middle of the 19th century. Americans were also underweight. However, today, the exact opposite is the case as the Dutch, Swedes, and Norwegians are the tallest, and the Danes, British and Germans – even the East-Germans - are also taller, towering over the Americans by as much as 3-7 cm. Americans also live shorter. The hypothesis is worth considering that this adverse development is related to the greater social inequality, an inferior health-care system, and fewer social safety nets in the United States than in Western and Northern Europe, in spite of higher per capita income. The West- and Northern European welfare states, with cradle to grave health and unemployment insurance currently provide a more propitious environment for the biological standard of living than its US counterpart.

The first known experiment with an exchange rate band took place in Austria- Hungary between 1896 and 1914. The rationale for introducing this policy rested on precisely those intuitions that the modern literature has emphasized: the band was designed to secure both exchange rate stability and monetary policy autonomy. However, unlike more recent experiences, such as the ERM, this policy was not undermined by credibility problems. The episode provides an ideal testing ground for some important ideas in modern macroeconomics: specifically, can formal rules, when faithfully adhered to, provide policy makers with some advantages such as short term autonomy? First, we find that a credible band has a "microeconomic" influence on exchange rate stability. By reducing uncertainty, a credible fluctuation band improves the quality of expectations, a channel that has been neglected in the modern literature. Second, we show that the standard test of the basic target zone model is flawed and develop an alternative methodology. We believe that these findings shed a new light on the economics of exchange rate bands.

This paper analyses the effects of a regionally coordinated corporate income tax in a model with three active countries, one of which is not part of the union, and a globally mobile firm. We show that regional tax coordination can lead to two types of welfare gain. First, for investments that would take place in the union in the absence of coordination, a coordinated tax increase can transfer location rents from the firm to the union. Second, by internalising all of the union’s benefits from foreign direct investment, a coordinated tax reduction can attract more welfare-enhancing investment than when member states act in isolation. Depending on which motive dominates, tax levels may thus rise or fall under regional coordination.

Physical stature is used as a proxy for the biological standard of living in the two Germanies before and after unification in an analysis of a cross-sectional sample (1998) of adult heights, as well as among military recruits of the 1990s. West Germans tended to be taller than East Germans throughout the period under consideration. Contrary to official proclamations of a classless society, there were substantial social differences in physical stature in East-Germany. Social differences in height were greater in the East among females, and less among males than in the West. The difficulties experienced by the East-German population after 1961 is evident in the increase in social inequality of physical stature thereafter, as well as in the increasing gap relative to the height of the West-German population. After unification, however, there is a tendency for East-German males, but not of females, to catch up with their West-German counterparts.

The height of the French male population of the Ancien Régime is estimated, on the basis of military records, to have been about 162 cm in the 17th century. This extremely short stature implies that, "the crisis of the 17th century" had an immense impact on the human organism itself. The improvement in climatic conditions at the turn of the 18th century had an ameliorating effect on the human organism, increasing in size by nearly 4 cms within a span of 12 years. Improved weather had a beneficial impact on agricultural conditions as well as a direct effect on biological processes. The physical stature of men increased until the birth cohorts of the 1740s, to decline thereafter, in keeping with the European pattern, although the decline of the second half of the 18th century was not more severe than elsewhere in Europe. France was not suffering from a prolonged period of malnutrition of unusual severity, and the threat of a Malthusian crisis was mild compared to 17th-century conditions. Hence, the anthropometric evidence supports the notion that the French economic malaise was not a fundamental cause of the political turmoil. To be sure, there were very large social differences in the biological standard of living, which clearly fuelled the fires of revolution. The height of the French upper classes was 7 cm above average, but, that, too, was standard for contemporary Europe.

This study analyses the physical stature of runaway apprentices and military deserters based on advertisements collected from 18th-century newspapers, in order to explore the biological welfare of colonial and early-national Americans. The results indicate that heights declined somewhat at mid-century, but increased substantially thereafter. The findings are generally in keeping with trends in mortality and in economic activity. The Americans were much taller than Europeans: by the 1780s adults were as much as 6.6 cm taller than Englishmen, and at age 16 American apprentices were some 12 cm taller than the poor children of London.

Researchers analyzing historical data on human stature have long sought an estimator that performs well in truncated-normal samples. This paper reviews that search, focusing on two currently widespread procedures: truncated least squares (TLS) and truncated maximum likelihood (TML). The first suffers from bias. The second suffers in practical application from excessive variability. A simple procedure is developed to convert TLS truncated means into estimates of the underlying population means, assuming the contemporary population standard deviation. This procedure is shown to be equivalent to restricted TML estimation. Simulation methods are used to establish the mean squared error performance characteristics of the restricted and unconstrained TML estimators in relation to several population and sample parameters. The results provide general insight into the bias-precision tradeoff in restricted estimation and a specific practical guide to optimal estimator choice for researchers in anthropometrics.