New developments in the world economy have triggered research designed to better
understand the changes in trade and investment patterns, and the reorganization of …

The resilience of trade balances of the major industrialized economies to changes in their
exchange rates has evoked interest in the exchange rate pass‐through relationship. So far …

How should firms decide whether and when to invest in new capital equipment, additions to
their workforce, or the development of new products? Why have traditional economic models …

Most investment expenditures have two important characteristics: First, they are largely
irreversible; the firm cannot disinvest, so the expenditures are sunk costs. Second, they can …

A firm's entry and exit decisions when the output price follows a random walk are examined.
An idle firm and an active firm are viewed as assets that are call options on each other. The …

This paper provides a model of firm and industry dynamics that allows for entry, exit and firm-
specific uncertainty generating variability in the fortunes of firms. It focuses on the impact of …

Recent theoretical models of entry predict that, in the presence of sunk costs, current market
participation is affected by prior experience. This paper quantifies the effect of prior exporting …

This paper examines the factors that increase the probability of entry into exporting. Using a
panel of US manufacturing plants, we test for the role of plant characteristics, spillovers from …

PERHAPS AT NO POINT in recent years has the debate over the direction of trade policy so
demanded public attention. Whether it has been Al Gore and Ross Perot clashing on …

We construct a model to study the implications of changes in political institutions for
economic institutions. A change in political institutions alters the distribution of de jure …