We set up a symmetric two-country model with two multinationals competing on the quantities and possibly manipulating their transfer prices. Governments choose both the corporate profit tax rate and the level of enforcement of the “arm’s length” principle. We show that stronger enforcement increases equilibrium tax rates. We also find that a larger international ownership of multinationals lead...

We study equilibrium security price dynamics in an economy where nonfundamental risk arises from agents' heterogeneous beliefs about extraneous processes. We completely characterize equilibrium in terms of the economic primitives, via a representative agent with stochastic weights. Besides pricing fundamental risk, an agent now also prices nonfundamental risk with a market price which is a risk...

We study a two-sided market in which a platform mediates between sellers and buyers, and signs private contracts with sellers. We compare this market with (i) a one-sided market with public contracts, and (ii) a two-sided market with public contracts. We find that equilibrium royalties can be positive or negative in a one-sided market with public contracts, are negative in a twosided market wit...

A model is presented where universities competitively supply education to mobile students. Students are subject to a liquidity constraint so that tuition must be paid out of pre-university income. It is shown that student loans provided by home jurisdictions will ensure an efficient quality of higher education if loans do not contain any subsidy. If there is income-related debt relief, however,...

Two-sided search is an important feature of the Real Estate market (REM). Existing empirical equilibrium search models assume that only one side of the market searches and, thus, can not adequately describe this market. We specify a two-sided equilibrium search model of the REM that incorporates five very important characteristics of the REM: a) buyers' and sellers' search behavior, b) heteroge...

Hospitals are instititions; they are also agglomerations of dispersed buildings. At any given time, all of these will be variously declared inadequate, under construction, having something tacked on, or altered to some different, generally lowlier, purpose. Plans are commissioned, and the money runs out; new plans are drawn up. The constant to-ing and fro-ing of the builders is difficult to con...