The paper presented in this ZEW Research Seminar leverages the small open economy Switzerland as a testing ground for basic premises of models of rational inattention. First, the authors document
The financial crisis recently demonstrated how dangerous global imbalances can be. At present, the global economy appears to be further from reducing trade imbalances than it was before the crisis. So
Only one out of ten German managers in China thinks that Chinese laws and institutional structures protect their companies against cyber-attacks. About 60 per cent of the executives in China believe t
The profit margin of German exporters remains largely unaffected by exchange rate fluctuations. In the case of a real appreciation of the DM, an average of 20 per cent of the appreciation - on the bas