Suchergebnisse

Since the Eurozone Crisis of 2010-12, a key debate on the viability of a currency union has focused on the role of a fiscal union in adjusting for country heterogeneity. However, a fully-fledged fiscal union may not be politically feasible. This paper develops a two-country international finance model to examine the benefits of the bankruptcy code of a capital markets union - in the absence of a fiscal union - as an alternative mechanism to improve the financial stability and welfare of a currency union. When domestic credit risks are present, I show that a lenient union-wide bankruptcy code that allows for default in the cross-border capital markets union removes the pecuniary externality of banking insolvency, so it leads to a Pareto improvement within the currency union. Moreover, the absence of floating nominal exchange rates removes a mechanism to neutralise domestic credit risks; I show that softening the union-wide bankruptcy code can recoup the lost benefits of floating nominal exchange rates. The model provides the financial stability and welfare implications of bankruptcy within a capital markets union in the Eurozone.

Since the Eurozone Crisis of 2010-12, a critical debate on the viability of a currency union has focused on the role of a fiscal union in adjusting for country heterogeneity. However, a fully-fledged fiscal union may not be politically feasible. This paper develops a two-country general equilibrium model to examine the benefits of the bankruptcy code of a capital markets union - in the absence of a fiscal union - as an alternative mechanism to improve the financial stability and welfare of a currency union. When domestic credit risks are present, I show that a lenient bankruptcy code in the cross-border capital markets union removes the pecuniary externality of banking insolvency, so it leads to a Pareto improvement within the currency union. Moreover, the absence of floating nominal exchange rates removes a mechanism to neutralise domestic credit risks; I show that softening the bankruptcy code can recoup the lost benefits of floating nominal exchange rates. The model provides the financial stability and welfare implications of bankruptcy within a capital markets union in the Eurozone.

This article studies internet celebrity culture as a crucial site of public learning and pedagogy, exploring the capacity of celebrated foreign speakers of Chinese to popularize discourses and knowledge of the language on social media. It specifically focuses on the YouTube channel MYBY founded by Martin Wiley Woods and Blair Sugarman, two foreign television personalities in China who have successfully extended their fame from traditional media to the internet. Through a multimodal discourse analysis of their bilingual 'talk shows' in which they evaluate the Chinese pronunciation and accents of other non-native speakers and share their own learning experiences, we discuss how Woods and Sugarman perform their identities as both model learners and language influencers by producing and challenging the language ideologies of normativity and speakerhood. We argue that internet celebrity pedagogy is an increasingly important genre of popular culture that discursively shapes the global transmission of Chinese language and linguaculture.

AbstractThis paper studies the impact of foreign direct investment (FDI) on innovation by domestic firms in China. A difference‐in‐difference estimation strategy yields causal evidence by exploiting China's deregulation of FDI in 2002. Analysis of a matched firm–patent data set from 1998 to 2007 shows that both the quantity and quality of innovation by domestic firms benefited from the presence of FDI. Emphasizing the importance of knowledge spillover from FDI in similar technology domains, the authors examine the role of horizontal FDI and FDI in technologically close industries—those sharing similar technology domains. Findings show that the latter generates much more substantial positive spillover than the former. The paper also shows that knowledge spillover from FDI in similar technology domains is not driven by input–output linkages. In addition, the spillover effect is stronger in cities with higher human capital stock and firms with higher absorptive capacity.

AbstractThere has been rapid growth in on‐demand ride‐hailing platforms that serve as an intermediary to match individual service providers (drivers) with consumer demand (riders). Several major players of this market have introduced carpool services that allow passengers heading toward the same direction to share a ride at a discounted fare. In this article, we develop an analytical model to study the pricing issues of ride‐sharing platforms in the presence of carpool services, and their economical and social implications. We show that the carpool service should be provided when its quality and/or the pooling efficiency is high. When the platform finds it optimal to offer the carpool service option, the platform achieves a larger market coverage and the riders are able to enjoy more affordable rides without compromising on service quality. Our analysis reveals that the provision of carpool services benefits the platform and the riders in general, but may hurt the drivers.