Template-Type: ReDIF-Paper 1.0
Author-Name: Onur Koska
Author-Name-First: Onur
Author-Name-Last: Koska
Author-Email: onur.koska@uni-tuebingen.de
Author-Workplace-Name: Department of Economics, University of Tuebingen
Title: A Model of Competition Between Multinational Firms
Abstract: This study focuses on the theory of how multinational firms choose their entry modes between alternative options (i.e., trade, greenfield investment, or acquisition). In a comprehensive model of strategic decision-making with more than one multinational firm, it delineates how a multinational firm's entry mode influences a rival multinational firm's market entry behavior and how exogenous factors (e.g., market size, firms' production cost, per-unit trade cost and fixed investment cost) affect the optimal entry modes. The main finding of the study is that competition among multinational firms substantially affects their optimal entry modes such that competition implies different entry modes compared to no competition.
Length: 39 pages
Creation-Date:  2009-10
Revision-Date: 2009-10
File-URL: http://www.otago.ac.nz/economics/research/otago077126.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0911
Classification-JEL: D21; F23; L13
Keywords: Market Entry; Foreign Direct Investment; Acquisition; Trade
Handle: RePEc:otg:wpaper:0911

Template-Type: ReDIF-Paper 1.0
Author-Name: Onur Koska
Author-Name-First: Onur
Author-Name-Last: Koska
Author-Email: onur.koska@uni-tuebingen.de
Author-Workplace-Name: Department of Economics, University of Tuebingen
Title: Foreign Direct Investment For Sale
Abstract: This study examines the choice of a multinational firm between two alternative entry modes, a greenfield investment and a joint venture, under incomplete information. The joint venture partner is selected by an auction, which distinguishes this study from other studies in the literature. A private values auction allows a multinational firm to increase its share of the joint venture profit so that a joint venture is always preferable to greenfield investment. The model also examines the nationally optimal entry mode and finds that greenfield investment is likely to reduce welfare. The anticipated welfare implications of a joint venture crucially depend on the expectation of the marginal cost of the joint venture. Relative to a greenfield investment, a joint venture is welfare-improving if the negative impact of a joint venture on a local rival's profit is small.
Length: 30 pages
Creation-Date:  2009-10
Revision-Date: 2009-10
File-URL: http://www.otago.ac.nz/economics/research/otago077125.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0910
Classification-JEL: F23; L24
Keywords: Foreign Direct Investment; Joint Venture; Incomplete Information; Auction with Externality
Handle: RePEc:otg:wpaper:0910

Template-Type: ReDIF-Paper 1.0
Author-Name: Daniel Farhat
Author-Name-First: Daniel
Author-Name-Last: Farhat
Author-Email: dan.farhat@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: Endogenous Labor Supply, Heterogeneous Firms and International Business Cycles
Abstract: This paper examines employment dynamics and international business cycle transmission within a two-country dynamic stochastic general equilibrium model featuring an endogenously determined trade pattern. In contrast to existing literature, this model allows for the household's labor supply to be determined endogenously, producing fluctuations in employment as business cycles are transmitted from one country to another. The model is able to generate pro-cyclical domestic employment as well as positive correlations of employment and output across countries. In addition, previous studies have difficulty generating international correlations of consumption and investment. This model replicates these stylized facts by strengthening frictions in international asset markets. The structure of labor supply is shown to be vital for the transmission of business cycles through trade linkages.
Length: 51 pages
Creation-Date:  2009-09
Revision-Date: 2009-09
File-URL: http://www.otago.ac.nz/economics/research/otago077124.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0909
Classification-JEL:  F12, F16, F21, F4
Keywords: International Real Business Cycles, Labor Supply, Imperfect Competition, International Trade
Handle: RePEc:otg:wpaper:0909

Template-Type: ReDIF-Paper 1.0
Author-Name: P. Dorian Owen
Author-Name-First: P. Dorian
Author-Name-Last: Owen
Author-Email: dorian.owen@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: Limitations of the relative standard deviation of win percentages for measuring competitive balance in sports leagues
Abstract: The relative standard deviation of win percentages, the most widely used measure of within-season competitive balance, has an upper bound which is very sensitive to variation in the numbers of teams and games played. Taking into account this upper bound provides additional insight into comparisons of competitive balance across leagues or over time.
Length: 13 pages
Creation-Date:  2009-07
Revision-Date: 2010-03
File-URL: http://www.otago.ac.nz/economics/research/otago077123.pdf
File-Format: Application/pdf
File-Function: Revised version, 2010
Number: 0908
Classification-JEL: D63, L83
Keywords: Competitive balance; Relative standard deviation; Idealized standard deviation
Handle: RePEc:otg:wpaper:0908

Template-Type: ReDIF-Paper 1.0
Author-Name: Alvin Etang Ndip
Author-Name-First: Alvin
Author-Name-Last: Etang Ndip
Author-Email: alvin.ndip@yale.edu
Author-Workplace-Name: Department of Economics, Yale University
Author-Name: David Fielding
Author-Name-First: David
Author-Name-Last: Fielding
Author-Email: david.fielding@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Author-Name: Stephen Knowles
Author-Name-First: Stephen
Author-Name-Last: Knowles
Author-Email: stephen.knowles@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: Does trust extend beyond the village? Experimental trust and social distance in Cameroon
Abstract: In this paper we use experimental data collected in rural Cameroon to quantify the effect of social distance on trust and altruism. Our measure of social distance is one that is relevant to everyday economic interactions: subjects in a Trust Game play with fellow villagers or with someone from a different village. We find that Senders in a Trust Game pass significantly more money to Recipients from their own village than to Recipients from a different village. To test for the possibility that Senders are motivated by unconditional kindness, they also play a Triple Dictator Game. We find that Senders pass significantly more money on average in the Trust Game than in the Triple Dictator Game, confirming that transfers in the Trust Game are partly motivated by Trust. However, there is also a social distance effect in the Triple Dictator Game, and around one third of the social distance effect in the Trust Game is due to greater unconditional kindness to fellow villagers. Results from a Risk Game suggest that Trust Game transfers are uncorrelated with attitudes to risk.
Length: 39 pages
Creation-Date:  2009-07
Revision-Date: 2009-07
File-URL: http://www.otago.ac.nz/economics/research/otago077122.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0907
Classification-JEL: C93, O12, Z13
Keywords: Experiment, Trust Game, Dictator Game, Risk Game, Social distance, Cameroon
Handle: RePEc:otg:wpaper:0907

Template-Type: ReDIF-Paper 1.0
Author-Name: Jan-Jan Soon
Author-Name-First: Jan-Jan
Author-Name-Last: Soon
Author-Email: jan.soon@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: When do students intend to return? Determinants of students' return intentions using a multinomial logit model
Abstract: Using a multinomial logit model, this paper looks at the determinants of when tertiary level international students intend to return home upon completion of their studies in New Zealand, be it not return, return immediately, return after some working stint, or return after some further education. Good perceptions of home have a strong positive impact on the probability of returning immediately, with perception of home lifestyle having the strongest impact. Contrary to received wisdom, perception of wage does not play a dominant role in determining when students intend to return home. 
Length: 40 pages
Creation-Date:  2009-06
Revision-Date: 2009-06
File-URL: http://www.otago.ac.nz/economics/research/otago077121.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0906
Classification-JEL: C25, J61
Keywords: Students' migration, multinomial logit model, return intention
Handle: RePEc:otg:wpaper:0906

Template-Type: ReDIF-Paper 1.0
Author-Name: Niven Winchester
Author-Name-First: Niven
Author-Name-Last: Winchester
Author-Email: niven.winchester@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Author-Name: Raymond T. Stefani
Author-Name-First: Raymond T.
Author-Name-Last: Stefani
Author-Email: stefani@csulb.edu
Author-Workplace-Name: College of Engineering, California State University, Long Beach
Title: An innovative approach to National Football League standings using optimal bonus points 
Abstract: Bonus points provide a simple way to improve the accuracy of league standings. We investigate the inclusion of bonuses in the National Football League (NFL) using a prediction model built on league points. Both touchdown-based and narrow-loss bonuses are shown to be significant. Our preferred system awards four points for a win, two for a tie, one point for scoring four or more touchdowns and one point for losing by seven or fewer points. Such a system would also make it easier for supporters to identify playoff contenders and place importance on otherwise meaningless end-of-game plays.  
Length: 33 pages
Creation-Date:  2009-06
Revision-Date: 2009-06
File-URL: http://www.otago.ac.nz/economics/research/otago0771020.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0905
Classification-JEL: C61, L83
Keywords: tournament design, sports predictions, NFL
Handle: RePEc:otg:wpaper:0905

Template-Type: ReDIF-Paper 1.0
Author-Name: Viktoria Kahui
Author-Name-First: Viktoria
Author-Name-Last: Kahui
Author-Email: viktoria.kahui@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Author-Name: Claire W. Armstrong
Author-Name-First: Claire W.
Author-Name-Last: Armstrong
Author-Email: claire.armstrong@nfh.uit.no
Author-Workplace-Name: Norwegian College of Fisheries Science, University of Tromso, Norway
Title: Comment: The Economics of Interdependent Renewable and Non-renewable Resources revisited.
Abstract: This work expands upon Swallow's theoretical analysis of interactions between renewable and non-renewable resources. In this comment the interaction is such that the renewable resource prefers the non-renewable environment, as opposed to SwallowÕs (op cit) case of the non-renewable environment being essential to the renewable resource. We find that this difference strongly affects the results, and makes the resources change from being complements to being substitutes, i.e. in the essential case profits from active development of the non-renewable resource come at the cost of reducing the optimal stock level for the renewable resource, while a preferred habitat implies the impacts of development can be offset by allowing for a larger renewable stock level.
Length: 16 pages
Creation-Date:  2009-05
Revision-Date: 2009-05
Number: 0904
Classification-JEL: Q22, Q30
Keywords: bioeconomic analysis; interaction renewable non-renewable resource
Handle: RePEc:otg:wpaper:0904

Template-Type: ReDIF-Paper 1.0
Author-Name: Liam J. A. Lenten
Author-Name-First: Liam J. A.
Author-Name-Last: Lenten
Author-Email: l.lenten@latrobe.edu.au
Author-Workplace-Name: School of Economics and Finance, La Trobe University
Author-Name: Niven Winchester
Author-Name-First: Niven
Author-Name-Last: Winchester
Author-Email: niven.winchester@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: Optimal Bonus Points in the Australian Football League
Abstract: Bonus point systems are a popular tournament design feature in some sports. We consider a bonus point system for the Australian Football League (AFL). In this paper, we utilise league points as a measure of team strength in a prediction model and choose the allocation of points to maximise prediction accuracy. For AFL data extending over seasons 1997-2008, we determine a bonus points system that does a better job at revealing strong teams than the current allocation of league points. We conclude that there is considerable scope for the introduction bonus points to improve tournament design in the AFL.
Length: 26 pages
Creation-Date:  2009-03
Revision-Date: 2009-03
File-URL: http://www.otago.ac.nz/economics/research/otago077119.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0903
Classification-JEL: C61, L83
Keywords: Sport, Predictions, Estimation, Tournament Design
Handle: RePEc:otg:wpaper:0903

Template-Type: ReDIF-Paper 1.0
Author-Name: Panicos Demetriades
Author-Name-First: Panicos
Author-Name-Last: Demetriades
Author-Email: pd28@le.ac.uk
Author-Workplace-Name: Department of Economics, University of Leicester
Author-Name: David Fielding
Author-Name-First: David
Author-Name-Last: Fielding
Author-Email: david.fielding@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: Information, Institutions and Banking Sector Development in West Africa
Abstract: Using a new panel dataset for banks in eight West African countries, we explore the factors that exacerbate or  alleviate excess liquidity, and the factors that promote or retard the rate of growth of banks' assets. Loan default rates in the region are high, and variations in the rate impact on liquidity and asset growth. However, the size of this effect is very sensitive to bank age. Some types of improvement in the quality of governance reduce excess liquidity and promote asset growth. However, the impact of other types of improvement, particularly with regard to corruption, is ambiguous. We uncover evidence that provides an explanation for this ambiguity.
Length: 26 pages
Creation-Date:  2009-01
Revision-Date: 2009-01
File-URL: http://www.otago.ac.nz/economics/research/otago077118.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0902
Classification-JEL: G21, O16
Keywords: Africa, Banking, Default, Institutions, Liquidity
Handle: RePEc:otg:wpaper:0902

Template-Type: ReDIF-Paper 1.0
Author-Name: Libertad Gonzalez
Author-Name-First: Libertad
Author-Name-Last: Gonzalez
Author-Email: libertad.gonzalez@upf.edu
Author-Workplace-Name: Department of Economics and Business, Universitat Pompeu Fabra
Author-Name: Tarja Viitanen
Author-Name-First: Tarja
Author-Name-Last: Viitanen
Author-Email: tarja.viitanen@otago.ac.nz
Author-Workplace-Name: Department of Economics, University of Otago
Title: The Long Term Effects of Legalizing Divorce on Children
Abstract: We estimate the effect of divorce legalization on the long-term well-being of children. Our identification strategy relies on exploiting the different timing of divorce legalization across European countries. Using European Community Household Panel data, we compare the adult outcomes of cohorts who were raised in an environment where divorce was banned with cohorts raised after divorce was legalized in the same country. We also have "control" countries where all cohorts were exposed (or not exposed) to divorce as children, thus leading to a difference-in-differences approach. We find that women who grew up under legal divorce have lower earnings and income as well as worse health as adults compared with women who grew up under illegal divorce. These effects are not found for men. We  find no effects of divorce legalization on childrenÕs family formation or dissolution patterns.
Length: 37 pages
Creation-Date:  2009-01
Revision-Date: 2009-01
File-URL: http://www.otago.ac.nz/economics/research/otago077117.pdf
File-Format: Application/pdf
File-Function: First version, 2009
Number: 0901
Classification-JEL:  J12, J13, K36
Keywords:  divorce, legislation, intergenerational effects, child outcomes
Handle: RePEc:otg:wpaper:0901