skip to content

Yuen, Chi-Wa 1960-

Overview
Works: 37 works in 298 publications in 1 language and 5,072 library holdings
Genres: Conference proceedings 
Roles: Editor
Classifications: HJ141, 338.064
Publication Timeline
Key
Publications about Chi-Wa Yuen
Publications by Chi-Wa Yuen
Most widely held works by Chi-Wa Yuen
Technology and the new economy ( file )
8 editions published between 2002 and 2003 in English and held by 1,413 libraries worldwide
Exercises in intertemporal open economy macroeconomics by Thomas H Krueger( file )
8 editions published in 1997 in English and held by 966 libraries worldwide
Fiscal policies and growth in the world economy by Jacob A Frenkel( file )
13 editions published between 1996 and 2002 in English and held by 959 libraries worldwide
Convergence in growth rates : a quantitative assessment of the role of capital mobility and international taxation by Assaf Razin( Book )
19 editions published between 1992 and 1994 in English and held by 159 libraries worldwide
We consider the role of capital mobility and international taxation. In explaining the observed diversity in long-term growth rates. Our major finding is that, under capital mobility, international differences in taxes will not matter for total growth differentials. Policy differences have a role to play in per capita growth differentials, however, when they lead to a divergence in the after-tax rates of return on capital across countries, as when the residence principle is adopted universally. When this is the case, how tax differences affect the growth rates of population and human capital will depend on the relative preference of the individual household towards these two engines of growth. Optimal tax policies are found to be growth-equalizing with and without policy coordination
Channeling domestic savings into productive investment under asymmetric information : the essential role of foreign direct investment by Assaf Razin( Book )
21 editions published between 1997 and 1998 in English and held by 139 libraries worldwide
Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income countries with insufficiently developed capital markets. This paper analyzes the problem of channeling domestic savings into productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio stakeholders. We emphasize the crucial role played by FDI in sustaining equity-financed capital investment for economies plagued by such information problems. Similar problems also exist for foreign portfolio debt flows. The paper identifies how, in the presence of information asymmetry, different capital market structures may lead to foreign over- or under-investment and to domestic under- or over-saving, and thus to inefficient equilibria. We show how corrective tax-subsidy policies consisting of taxes on corporate income and the capital incomes of both residents and nonresidents can restore efficiency
Quantitative implications of the home bias : foreign underinvestment, domestic oversaving, and corrective taxation by Assaf Razin( Book )
18 editions published in 1997 in English and held by 97 libraries worldwide
There is strong evidence about a home-court advantage in international portfolio" investment. One explanation for the bias is an information asymmetry between domestic and" foreign investors about the economic performance of domestic firms. This asymmetry causes" two types of distortions: an aggregate production inefficiency and a production-consumption" inefficiency, leading to foreign underinvestment and domestic oversaving respectively. Such" market failures are found to be quite severe, slightly more so with equity flows than with debt" flows. These inefficiencies can nonetheless be corrected by a mix of tax-subsidy instruments consisting of taxes on corporate income and on the capital incomes of both residents and" nonresidents. When only a partial set of instruments is available, however each tax instrument can change radically and may even be reversed although the welfare gains" can be fairly substantial and sometimes close to the first best optimum. This partial set of" instruments appears to be more effective in handling the market failure in the case of equity" flows than in the case of debt flows
Understanding the "problem of economic development" : the role of factor mobility and international taxation by Assaf Razin( Book )
9 editions published in 1999 in English and held by 97 libraries worldwide
The problem of economic development, ' as Lucas (1988) states it, is the problem of accounting for the observed diversity in levels and rates of growth of per capita income across countries and across time. We study conditions under which capital mobility and labor mobility (two seemingly income-equalizing forces) may interact with cross-country differences in income tax rates and income tax principles (two seemingly income-diverging forces) to generate such diversity. As a corollary, we also examine when countries with different initial endowments may finally converge in their income levels
The "new Keynesian" Phillips curve : closed economy vs. open economy by Assaf Razin( Book )
16 editions published in 2001 in English and held by 97 libraries worldwide
The paper extends Woodford's (2000) analysis of the closed economy Phillips curve to an open economy with both commodity trade and capital mobility. We show that consumption smoothing, which comes with the opening of the capital market, raises the degree of strategic complementarity among monopolistically competitive suppliers, thus rendering prices more sticky and magnifying output responses to nominal GDP shocks
Do debt flows crowd out equity flows or the other way round? by Assaf Razin( Book )
15 editions published between 1998 and 2000 in English and held by 93 libraries worldwide
In the presence of asymmetric information, the stage at which financing decisions are made about investment projects in a small open economy is crucial for the composition of international capital inflows as well as for the efficiency of channeling savings into investment. This paper compares the implications of two extreme cases regarding the information possessed by the firms at their financing stage for whether inflows of foreign debt may crowd out foreign equity or the other way round. The scope for corrective tax policies is examined. We also provide a welfare comparison between the two mechanisms of capital flows
Capital income taxation and long run growth : new perspectives by Assaf Razin( Book )
15 editions published between 1994 and 1996 in English and held by 92 libraries worldwide
We study the effects of capital income taxation on long run growth in an endogenous growth framework with two distinguishing features: endogenous population and international capital mobility. Endogenizing population growth introduces a new channel for taxes to affect economic growth and enables us to discriminate the effects of taxes on total versus per capita income growth. Allowing for capital mobility in the open economy, we show how the effects of taxes on population growth and income growth across countries will vary in specific ways, depending on the international income tax regimes and the relative preference bias of people towards the 'quantity' and 'quality' of children. The numerical results based on our calibrated model for the G-7 also indicate that, although the effects of liberalizing capital flows on long run growth may not be very sizable, the growth effects of changes in capital income tax rates can be tremendously magnified by cross-border capital flows and cross-border spillovers of policy effects
Can capital controls alter the inflation-unemployment tradeoff? by Assaf Razin( Book )
12 editions published in 1995 in English and held by 91 libraries worldwide
It is well-known that, in the Mundell-Fleming model, capital mobility creates a channel through which permanent (transitory) shocks to aggregate demand such as fiscal and trade shocks are completely (partially) neutralized by the response of the real exchange rate. An important policy implication of the model which went largely unnoticed is how the transmission of these shocks under different degrees of capital mobility may alter the inflation-unemployment tradeoff, i.e., the Phillips Curve. In the context of the stochastic Mundell-Fleming model, we show that capital controls reduce the output/employment variations at the expense of bigger variations in inflation rates. When the policy maker puts heavier weight on stable employment than on stable inflation, therefore, his/her objective can be attained more easily under capital controls
Exchange rate regimes and macroeconomic stability by Lok-sang Ho( Book )
4 editions published in 2003 in English and held by 88 libraries worldwide
The Asian crisis of 1997-1998 was a major influence on macroeconomic thinking concerning exchange rate regimes, the functioning of international institutions, such as the IMF and the World Bank, and international contagion of macroeconomic instability from one country to another. Exchange Rate Regimes and Macroeconomic Stability offers perspectives on these issues from the viewpoints of two Nobel Laureates, an IMF economist, and Asian economists. This book contributes new ideas to the ongoing debate on the role of domestic monetary authorities and international institutions in reducing the likelihood of international financial crises, as well as the problems associated with various exchange rate regimes from the standpoint of macroeconomic stability. Overall, the chapters contained in this volume offer interesting perspectives, which have been stimulated by the recent events in the foreign exchange market. They provide a useful reference for anyone interested in the development of exchange rate regimes, and represent considerable reflection by economists half a century after Bretton Woods
Factor mobility and income growth : two convergence hypotheses by Assaf Razin( Book )
9 editions published between 1995 and 1998 in English and held by 84 libraries worldwide
While technologies and policy fundamentals are presumably different internationally, inducing differences in growth rates, capital mobility is shown to be a powerful force in achieving complete growth rate equalization across countries. We provide evidence in support of this effect, showing that restrictions on capital flows tend to make individual country growth rates more divergent. In the context of regional growth, however, labor mobility is shown to be capable of generating income level equalization across regions in the presence of knowledge spillovers. Some supporting evidence is found for this effect, showing that restrictions on labor flows tend to make individual region/country per capita income more divergent
Labor mobility and fiscal coordination by Assaf Razin( Book )
9 editions published between 1996 and 1998 in English and held by 83 libraries worldwide
Using a human capital based growth model, we show the essential role of labor mobility and cross-country tax harmonization in equalizing income levels of countries that start off from different initial income positions. Knowledge spillovers cum labor mobility are the driving forces behind the income level equalization process. In the absence of tax harmonization within an economic union, equality in income levels is not achievable. Coordination of educational subsidies necessary for the internalization of knowledge spillovers may or may not be necessary. These considerations constitute the basis for our efficient growth agenda for an economic union such as the EU
An information-based model of foreign direct investment : the gains from trade revisited by Assaf Razin( Book )
9 editions published in 1999 in English and held by 82 libraries worldwide
Foreign direct investment (FDI) is observed to be a predominant form of capital flows to emerging economies, especially when they are liquidity-constrained internationally during a global financial crisis. The financial aspects of FDI are the focus of the paper. We analyze the problem of channeling domestic saving into productive investment in the presence of asymmetric information between the managing owners of firms and the other portfolio stakeholders. We explore the role played by FDI in reviving equity-financed capital investment for economies plagued by such information problems. In the presence of asymmetry, the paper identifies how, however, FDI gives rise to foreign overinvestment as well as domestic undersaving. We re-examine the gains from trade argument (applied to intertemporal trade) in this case of informational-asymmetry driven FDI. We show that the gains could be sizable when the domestic credit market is either underdeveloped or failing as a result of a financial crisis. But with well-functioning domestic credit market, the gains turn into losses. Surprisingly, capital may flow into the country even though the autarkic marginal productivity of capital in the domestic economy falls short of the world rate of interest. In such a situation, capital should have efficiently flown out rather than in, and FDI is a loss-generating phenomenon
Excessive FDI flows under asymmetric information by Assaf Razin( Book )
11 editions published in 1999 in English and held by 82 libraries worldwide
In Razin, Sadka and Yuen (1998, 1999a), we explored the policy implications of the home-bias in international portfolio investment as a result of asymmetric information problems in which domestic savers, being 'close' to the domestic market, have an informational advantage over foreign portfolio investors, who are 'far away' from the domestic market. However, FDI is different from foreign portfolio investment, concerning relevant information about domestic firms. Through the stationing of managers from the headquarters of multinational firms in the foreign direct establishments in the destination countries under their control, FDIors can monitor closely the operation of such establishments, thus circumventing these informational problems. Futhermore, FDI investors not only have an informational advantage over foreign portfolio investors, but they are also more informed than domestic savers. Because FDI entails direct control on the acquired domestic firm, which the typical domestic savers with ownership position in the firm do not have. Being 'insiders' the FDIers can 'overcharge' the uninformed domestic savers, the 'outsiders', when multinational subsidiaries shares are traded in the domestic stock market. Anticipating future domestic stock market trade opportunities, in advance, foreign investment becomes excessive. However, unlike the home-bias informational problem, which leads to inadequate foreign portfolio capital inflows, but may be correctable by Pigouvian taxes such as tax on non-resident income, tax on interest income and corporate tax (see Razin, Sadka, and Yuen (1998, 1999a)), excessive FDI flows under the insider-outsider informational problem call for a non-tax corrective policy. First, because they are governed by unobservable variables (such as the productivity level which triggers default, according to the firm contract with its lender). Second, because there exist self- fulfilling expectations equilibria which cannot be efficiently corrected by taxation. The corrective policol that is left available is then simply quantity restrictions on FDI
Tax principles and capital inflows : is it efficient to tax nonresident income? by Assaf Razin( Book )
9 editions published in 1996 in English and held by 81 libraries worldwide
Even though financial markets today show a high degree of integration, the world capital market is still far from the textbook story of high capital mobility. The failure to have a tax scheme in which the rate of returns across countries are equated can result in inefficient capital flows across countries. This comes from the interactions of market failure and the tax system. The purpose of this paper is to highlight some key sources of market failure in the context of international capital flows and to provide guidelines for efficient tax structure in the presence of capital market imperfections. We distinguish among three main types of international capital flows: foreign portfolio debt investment (FPDI), foreign portfolio equity investment (FPEI), and foreign direct investment (FDI). The paper emphasizes the efficiency of a non-uniform tax treatment of the various vehicles of international capital flows
Why international equity inflows to emerging markets are inefficient and small relative to international debt inflows by Assaf Razin( Book )
9 editions published in 2001 in English and held by 73 libraries worldwide
This paper considers the financing of investment in the presence of asymmetric information between the 'insiders' and the 'outsiders' of the firms in a small open economy. It establishes a well-defined capital structure for the economy as a whole with the following features: low-productivity firms rely on the equity market to finance investment at a relatively low level; medium-productivity firms do not invest at all; and high-productivity firms rely on the debt market to finance investment at a relatively high level. It is shown that the debt market is efficient, with respect to both its scope and the amount of investment that each firm makes. However, the equity market fails: its scope is too narrow and the investment each firm makes is too little. A corrective policy requires just one instrument which is rather unconventional: lump-sum subsidies to those firms that choose to equity-finance their investment (i.e., equity-market-contingent grants)
Capital mobility and the output-inflation trade-off by Prakash Loungani( Book )
19 editions published between 1996 and 2000 in English and held by 70 libraries worldwide
Understanding the determinants of the output-inflation tradeoff (or the "sacrifice ratio") has been a key area of research in business cycle theory. The new classical approach [Lucas (1972, 1973)] and the new Keynesian approach [Ball, Mankiw and Romer (1988), Ball (1993)] offer competing explanations for the determinants of the tradeoff. Though these studies use cross-country data to test their models, both approaches are based on closed economy considerations
A pecking order theory of capital inflows and international tax principles by Assaf Razin( Book )
13 editions published in 1996 in English and held by 64 libraries worldwide
 
moreShow More Titles
fewerShow Fewer Titles
Associated Subjects
Asia Capital investments--Econometric models Capital levy--Econometric models Capital market Capital movements Capital movements--Econometric models Capital movements--Mathematical models Corporate governance--Econometric models Debt financing (Corporations) Debts, External Developing countries Economic development--Econometric models Economics Economic stabilization Financial crises Financial crises--Econometric models Fiscal policy Fiscal policy--Econometric models Income distribution--Econometric models Income tax--Foreign income--Mathematical models Income tax--Mathematical models Inflation (Finance)--Econometric models Inflation (Finance)--Mathematical models Information technology Information theory in economics Intergovernmental fiscal relations--Econometric models International business enterprises--Finance International economic relations International economic relations--Econometric models International trade--Econometric models Investments, Foreign Investments, Foreign--Econometric models Investments, Foreign--Mathematical models Investments, Foreign--Taxation Investments, Foreign--Taxation--Econometric models Keynesian economics Labor mobility--Econometric models Macroeconomics Monetary policy Monopolistic competition Phillips curve Portfolio management Prices Saving and investment Saving and investment--Econometric models Saving and investment--Mathematical models Taxation--Econometric models Technological innovations--Economic aspects Unemployment--Mathematical models United States
Alternative Names
Chi-Wa Yuen.
Chi-Wa, Yuen, 1960-
Languages
English (246)
Covers
Close Window

Please sign in to WorldCat 

Don't have an account? You can easily create a free account.