Capital Controls and Firm's Dynamics

Capital Controls and Firm's Dynamics

Alexei G. Orlov (Radford University, USA)
DOI: 10.4018/978-1-59140-649-5.ch013
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This chapter constructs a dynamic model of a multinational enterprise (MNE) to quantify the effects of various capital control policies on a firm’s debt and equity positions, innovations, and outputs at the headquarters and subsidiary. The model is calibrated to the US Foreign Direct Investment (FDI) Benchmark Survey and the IMF’s Exchange Arrangements and Exchange Restrictions so that it reproduces the average US FDI and technology flows to foreign subsidiaries. Both steady-state and transition analyses suggest a significant impact of capital controls on an MNE’s operations. Lifting capital restrictions produces an inflow of capital and technology into the less developed countries, leading to an increase in the steady-state FDI position and production. Simulation experiments reveal that even short-term capital controls have long-lasting negative effects.

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Table of Contents
Chapter 1
Serge Hayward
In this chapter, I consider a design framework of a computational experiment in finance. The examination of statistics used for economic forecasts... Sample PDF
Financial Modeling and Forecasting with an Evolutionary Artificial Neural Network
Chapter 2
Christopher Zapart, Satoshi Kishino, Tsutomu Mishina
This chapter describes a new procedure for designing optimum correlation measures for financial time series. The technique attempts to overcome some... Sample PDF
Pricing Basket Options with Optimum Wavelet Correlation Measures
Chapter 3
Chui-Che Tseng
The goal of an artificial intelligence decision support system is to provide the human user with an optimized decision recommendation when operating... Sample PDF
Influence Diagram for Investment Portfolio Selection
Chapter 4
Senlin Wu, Siddhartha Bhattacharyya
This chapter explores the minimal intelligence conditions for traders in a general double auction market with speculation activities. Using an... Sample PDF
Minimal Intelligence Agents in Double Auction Markets with Speculators
Chapter 5
Lukáš Pichl, Ayako Watanabe
An optimal policy problem is formulated for evolutionary market settings and analyzed in two applications at the micro- and macrolevels. First... Sample PDF
Optimization of Individual and Regulatory Market Strategies with Genetic Algorithms
Chapter 6
Yuriy Nemyvaka, Katia Sycara, Duane J. Seppi
The goal of this chapter is to establish an analytical foundation for electronic market making. We use two classes of models to reason about this... Sample PDF
Fundamental Issues in Automated Market Making
Chapter 7
N. Feltovich
Human-participants experiments using markets with asymmetric information typically exhibit a “winner’s curse,” wherein bidders systematically bid... Sample PDF
Slow Learning in the Market fopr Lemons: A Note on Reinforcement Learning and the Winner's Circle
Chapter 8
Yuya Sasaki, Nicholas S. Flann
This chapter demonstrates an application of agent-based selection dynamics to the traffic assignment problem. We introduce an evolutionary dynamic... Sample PDF
Multi-Agent Evolutionary ame Dynamics and Reinforcement Learning Applied to Online Optimization for the Traffic Policy
Chapter 9
Edit J. Kaminsky, Holly Danker-McDermot, Freddie Douglas
This chapter discusses artificial computational intelligence methods as applied to cost prediction. We present the development of a suite of hybrid... Sample PDF
Fuzzy-Neural Cost Estimation for Engine Tests
Chapter 10
Lukáš Pichl, Takuya Yamano
This chapter focuses on the principles of management in software development projects and optimization tools for managerial decision making... Sample PDF
Computer-Aided Management of Software Development in Small Companies
Chapter 11
Ana Marostica, Cesar Briano
This chapter explains a hybrid-decision support system (HDSS) in which a heuristic-data mining procedure (a complement of a statistic-data mining)... Sample PDF
Modern Organizations and Decision-Making Processes: A Heuristic Approach
Chapter 12
Seán Boyle, Stephen Guerin, Daniel Kunkle
This chapter reports on a multi-agent approach to the construction of a model of the English criminal justice system. The approach is an integration... Sample PDF
An Application of Multi-Agent Simulation to Policy Appraisal in the Criminal Justice System
Chapter 13
Alexei G. Orlov
This chapter constructs a dynamic model of a multinational enterprise (MNE) to quantify the effects of various capital control policies on a firm’s... Sample PDF
Capital Controls and Firm's Dynamics
Chapter 14
W. F. Lawless, M. Bergman, N. Feltovich
This chapter constructs a dynamic model of a multinational enterprise (MNE) to quantify the effects of various capital control policies on a firm’s... Sample PDF
A Physics of Organizational Uncertainty: Perturbations, Measurement and Computational Agents
Chapter 15
Tsai-Lung Liu, Chia-Chen Kuo
This chapter employs a cross-theory perspective by combining the four theories of agency theory, resource-dependent theory, resource-based theory... Sample PDF
Reducing Agency Problem and Improving Organizational Value-Based Decision-Making Model of Inter-Organizational Strategic Alliance
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