Secrecy about investment in research and development (R&D) can promote greater technological change and higher social welfare in competitive industries. In a duopoly where each firm has private information about its actual production technology (or cost) and firms engage in cost-reducing R&D with uncertain outcomesprior to engaging inprice competition, the equilibriumoutcomewhen firms do not ob...

This paper reassesses the burden of the current U.S. international tax regime and reconsiders well-known welfare benchmarks used to guide international tax reform. Reinventing corporate tax policy requires that international considerations be placed front and center in the debate on how to tax corporate income. A simple framework for assessing current rules suggests a U.S. tax burden on foreign...

Axiomatic analysis of bankruptcy problems reveals three major principles: (i) proportionality (PRO), (ii) equal awards (EA), and (iii) equal losses (EL). However, most real life bankruptcy procedures implement only the proportionality principle. We construct a noncooperative investment game to explore whether the explanation lies in the alternative implications of these principles on investment...

We build a model where investments in human capital depend on the state of an individual’s social network. We show that correlation patterns between parents’ and children’s human capital investment and income depend on the structure of their social network. Heavier reliance on the social network increases the correlation of human capital investments and income across generations and decreases t...

Investment in infrastructure is recognized as a key enabler of economic prosperity, but it is also important for addressing social and environmental challenges, including climate change mitigation and addressing fuel poverty. The UK Government Strategy Investing in Britain’s Future argues that significant investment in “resilient, cost effective and sustainable energy supplies” is needed to mee...

We undertook a survey of US investors to examine whether social preferences can explain three measures of engagement in socially responsible investment (SRI): interest in SRI; history of SRI investment; and the proportion currently invested in SRI. We find that investors with stronger social preferences are more interested in SRI than are those with weaker social preferences. Further, investors...

Social learning models of investment provide an interesting explanation for sudden changes in investment behaviour. Caplin and Leahy (1994) develop a model of social learning in which agents learn about the true state of demand from the investment suspension decisions of other agents. The author tests the main predictions of Caplin and Leahy’s model using a unique database of investment project...

Purpose Social entrepreneurs engage in action because social want to solve problems. Consequently, see more entrepreneurship contexts with the most severe problems is expected. This paper argues that this an oversimplification of problem-action nexus and does not necessarily correspond observed scale Drawing on theoretical framing crescive conditions, relationship affected by forms public inves...

The use of natural resource revenues for achievement of development has been a challenging issue for resource abundant countries. These challenges stem from the fact that incomes from natural resources are non-durable, unpredictable and uncertain. Different countries have pursued various approaches and tools for managing these revenues to avoid economic fluctuations. The international organizat...