The interaction between labor unions and international competition has received a lot of attention. In the first decade of the 21st century, increasing number of companies in unionized oligopolistic industries has shifted production abroad. However, the issue of outsourcing in the context of a...

I explore investors’ welfare losses when they restrict themselves to invest in either stocks only or bonds only, but not in both. The restriction gives investors sub-optimal asset allocations that result in welfare losses. To measure these welfare losses I compare “only stock indices and...