Recent Submissions

  • Estimating the Impact of Time-Invariant Variables on FDI with Fixed Effects 

    Davies, Ronald B.; Ionascu, Delia; Kristjánsdóttir, Helga (University of Oregon, Dept of Economics, 2007-05)
    This paper applies the panel fixed effects with vector decomposition estimator to three FDI datasets to estimate the impact of time-invariant variables on FDI while including fixed effects. We find that the omission of ...
  • Tax Competition for Heterogeneous Firms with Endogenous Entry: The Case of Heterogeneous Fixed Costs 

    Davies, Ronald B.; Eckel, Carsten (University of Oregon. Dept of Economics, 2007-02)
    This paper models tax competition for mobile firms that are differentiated by the amount of labor needed to cover fixed costs. Because tax competition affects the distribution of firms, it affects both relative equilibrium ...
  • Tax Competition for Heterogeneous Firms with Endogenous Entry 

    Davies, Ronald B.; Eckel, Carsten (University of Oregon, Dept of Economics, 2007-03)
    This paper models tax competition for mobile firms that are differentiated by the amount of labor needed to cover fixed costs. Because tax competition affects the distribution of firms, it affects both relative equilibrium ...
  • Adaptive Learning with a Unit Root: An Application to the Current Account 

    Davies, Ronald B.; Shea, Paul, 1977- (University of Oregon, Dept of Economics, 2006-07-31)
    This paper develops a simple two-country, two-good model of international trade and borrowing that suppresses all previous sources of current account dynamics. Under rational expectations, international debt follows a ...
  • Mandatory Minimum Sentencing, Drug Purity and a Test of Rational Drug Use 

    Davies, Ronald B. (University of Oregon, Dept of Economics, 2003-04-10)
    As of 1987, the Anti-Drug Abuse Act (ADAA) has imposed mandatory minimum sentences for drug traffickers based on the quantity of the drug involved regardless of its purity. Using the STRIDE dataset on drug arrests and a ...
  • Tax Competition for International Producers and the Mode of Foreign Market Entry 

    Davies, Ronald B.; Egger, Hartmut; Egger, Peter (University of Oregon, Dept of Economics, 2003-04-10)
    This paper studies non-cooperative tax competition between two countries for an international producer. The international producer chooses where to locate its headquarters and whether to serve the overseas market through ...
  • Fixed Costs, Foreign Direct Investment, and Gravity with Zeros 

    Davies, Ronald B.; Kristjánsdóttir, Helga (University of Oregon, Dept of Economics, 2006-06)
    Fixed costs play a crucial role in current models of foreign direct investment (FDI), yet they are almost entirely ignored in empirical treatments of FDI. We fill this gap by using a 1989-2001 panel of FDI flows into ...
  • Population Aging, Foreign Direct Investment, and Tax Competition 

    Davies, Ronald B.; Reed, Robert R. (Robert Ray), 1970- (University of Oregon, Dept of Economics, 2006-05-25)
    This paper studies the role of population aging for foreign direct investment and the strategic taxation of capital. Importantly, our theoretical model suggests that the labor market implications of aging differ from the ...
  • Cooperation in Environmental Policy: A Spatial Approach 

    Davies, Ronald B.; Naughton, Helen T. (Helen Tammela), 1976- (University of Oregon, Dept of Economics, 2006-07)
    Inefficient competition in emissions taxes creates benefits from international cooperation. In the presence of cross-border pollution, proximate (neighboring) countries may have greater incentives to cooperate than distant ...
  • Self-Protection: Fragmentation of Headquarter Services and FDI 

    Davies, Ronald B. (University of Oregon, Dept of Economics, 2003-11)
    I develop a simple model in which production of skill-intensive headquarter services are fragmented across borders in order to take advantage of complementarities between types of skilled labor. This setting indicates that ...
  • Self-Protection: Antidumping Duties, Collusion and FDI 

    Davies, Ronald B.; Liebman, Benjamin H., 1971- (University of Oregon, Dept. of Economics, 2003-11)
    It is well established that the threat of antidumping duties can help sustain collusion between a foreign firm and its domestic counterpart. However, when the foreign firm is a multinational, its subsidiary will fight ...
  • Fragmentation of Headquarter Services and FDI 

    Davies, Ronald B. (University of Oregon, Dept of Economics, 2003-09)
    I develop a simple model in which production of skill-intensive headquarter services are fragmented across borders in order to take advantage of complementarities between types of skilled labor. This setting indicates that ...
  • Tax Treaties, Renegotiations, and Foreign Direct Investment 

    Davies, Ronald B. (University of Oregon, Dept. of Economics, 2003-06-10)
    Bilateral tax treaties are an important method of international tax cooperation. I survey the existing literature on these agreements, highlighting the differences between the standard view that treaties increase foreign ...
  • Estimating The Knowledge-Capital Model of the Multinational Enterprise: Comment 

    Blonigen, Bruce A. (Bruce Aloysius); Davies, Ronald B.; Head, Keith (University of Oregon, Dept. of Economics, 2002-03-01)
    No abstract was submitted.
  • Hunting High and Low for Vertical FDI 

    Davies, Ronald B. (University of Oregon, Dept. of Economics, 2002-08-01)
    Recently the two dominant models of foreign direct investment (FDI), the horizontal and vertical models, have been synthesized into the knowledge capital (KK) model. Empirical tests, however, have found that the horizontal ...
  • The OECD Model Tax Treaty: Tax Competition and Two-Way Capital 

    Davies, Ronald B. (University of Oregon, Dept. of Economics, 2002-01-01)
    Model tax treaties do not require tax rate coordination, but do call for either credits or exemptions when calculating a multinational’s domestic taxes. This contradicts recent models with a single capital exporter where ...
  • Do Bilateral Tax Treaties Promote Foreign Investment? 

    Blonigen, Bruce A. (Bruce Aloysius); Davies, Ronald B. (University of Oregon, Dept. of Economics, 2001-06-01)
    We explore the impact of bilateral tax treaties on foreign direct investment using data from OECD countries over the period 1982-1992. We find that recent treaty formation does not promote new investment, contrary to the ...
  • Tax Competition and Foreign Capital 

    Davies, Ronald B.; Gresik, Thomas A. (University of Oregon, Dept. of Economics, 2001-01-01)
    This paper derives welfare equivalence of double taxation rules in a tax competition model with discriminatory home taxes and the ability to finance subsidiary operations with host country capital. For a more general model, ...
  • The Effects of Bilateral Tax Treaties on U.S. FDI Activity 

    Blonigen, Bruce A. (Bruce Aloysius); Davies, Ronald B. (University of Oregon, Dept. of Economics, 2001-01-01)
    The effects of bilateral tax treaties on FDI activity have been unexplored, despite significant ongoing activities by countries to negotiate and ratify these treaties. This paper estimates the impact of bilateral tax ...
  • Competition in Taxes and Performance Requirements for Foreign Direct Investment 

    Davies, Ronald B.; Ellis, Christopher J. (University of Oregon, Dept. of Economics, 2001-06-01)
    Tax incentives offered to attract firms engaged in foreign direct investment are often tied to performance requirements such as domestic content restrictions. The tax competition literature has repeatedly shown that ...

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