infonet-economy

We provide a framework for analyzing bilateral mergers when there is two-sided asymmetric information about firms’ types. We show that there is always a "no-merger" equilibrium where firms do not consent to a merger, irrespective of their type. There may also be a "cut-off" equilibrium if the expected merger returns satisfy a suitable single crossing condition,...

Based on a nonparametrically estimated model of labor market classifications, this paper makes suggestions for immigration policy using data from western Germany in the 1990s. It is demonstrated that nonparametric regression is feasible in higher dimensions with only a few thousand observations. In sum, labor markets able to absorb immigrants are characterized by above average age...

This is a very colorful paper that makes for interesting reading. The author shows that the U. S. Food and Drug Administration (FDA) increasingly does not decide about market access to drugs only, but influences the innovation process as a whole. And although "information" does not appear in the title of the paper, the distribution of knowledge as affected by the FDA plays...

The observation that average health care expenditure rises with age generally leads experts and laymen alike to conclude that population ageing is the main driver of health care costs. In recently published studies we challenged this view (Zweifel et al., 1999; Felder et al., 2000). Analysing health care expenditure of deceased persons, we showed that age is insignificant if...

It is argued that the binational state model is and should be considered as a model sui generis. Concentrating on three levels of analysis (recognition, autonomy, and authority i.e the majority prolem), an operational definition of binationalism allows for an idealtypical discussion of the homogeneity problem and the question of state sovereignty, showing that the problem of power...

War is a puzzle because, if states were rational, they should agree on their differences in power and reach a solution that avoids the costs of fighting. However, this thesis argues that states are only as rational as the men who lead them, who are well established to suffer from psychological "positive illusions" about their abilities, their control over events, and the...