Commercial and tax policy with endogenous capital flows: a welfare analysis

A model of two small trading countries linked by flows of two types of sector specific capital is analysed. We present the effects of a country's commercial and tax policy on its welfare in the presence of complete capital mobility between these ‘neighbouring’ countries. The welfare effects are shown to depend crucially on multilateral factor intensity rankings, as well as on the relative importance of exported versus imported capital.     

ON THE PREDICTABILITY OF GROWTH IN EARNINGS PER SHARE

Arguments are given to support the hypothesis that corporate earnings per share are predictable by simple forecasting models. If income numbers have predictable properties, growth is predictable and theories of corporate valuation become more credible. Notions that EPS growth are completely unpredictable are disputed.