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Full-Text Articles in Social and Behavioral Sciences
Was Japan’S Real Interest Rate Really Too High During The 1990s? The Role Of The Zero Interest Rate Bound And Other Factors, Hiro Ito
Economics Faculty Publications and Presentations
Japan’s more than a decade long “Great Recession” has presented a disconcerting case of what could happen if interest rates are bounded by zero and deflation sets in. Since Krugman (1998), the commonplace observation is that the deflationary situation combined with the zero nominal interest rate has caused elevated real interest rates, thereby nullifying monetary policy. This paper investigates this oft -cited claim and examines whether it is associated with anomalies in the way real interest rates are determined by employing an error correction model (ECM) based on the time-varying parameter model with Markov-switching variances. Using this model it is …
Ceo Turnover And Foreign Market Participation, Bruce A. Blonigen, Rossitza B. Wooster
Ceo Turnover And Foreign Market Participation, Bruce A. Blonigen, Rossitza B. Wooster
Economics Faculty Publications and Presentations
Anecdotal evidence suggests that new CEOs with foreign backgrounds direct their firms to become more international in their operations. We examine this hypothesis formally using data on U.S. S&P-500 manufacturing firms from1992 through 1997 and biographical information on CEOs’ birth and education locations that allow us to identify changes from U.S.- to foreign-connected CEOs. Robust to a variety of specifications, we find that a U.S. firm’s switch from a U.S. to a foreign CEO leads to substantial increases in the firm’s proportion of its foreign assets and foreign affiliate sales. In fact, our preferred specification indicates that foreign asset and …