Showing 1 - 10 of 45
Product development within and across community-based and geographically dispersed virtual organizations is becoming an increasingly important mechanism through which individual knowledge holders create and disseminate knowledge in joint efforts to generate products. Without the benefits of...
Persistent link: https://www.econbiz.de/10011083814
Child labor is often condemned as a form of exploitation. I explore how the notion of exploitation, as used in everyday … language, can be made precise in economic models of child labor. Exploitation is defined relative to a specific social welfare … distinctions that common usage of the term exploitation allows. I resolve this conflict by introducing a welfare function with …
Persistent link: https://www.econbiz.de/10011084615
We present a theory of ethnic conflict in which coalitions formed along ethnic lines compete for the economy's resources. The role of ethnicity is to enforce coalition membership: in ethnically homogeneous societies members of the losing coalition can defect to the winners at low cost, and this...
Persistent link: https://www.econbiz.de/10005791398
Estimating the effect of trade on capital flows is difficult given the inherent identification problem. We use fluctuations in rainfall to capture the exogenous variation in trade between Germany, France, the U.K., and the Ottoman Empire during 1859-1913. The provisionistic policy of the Ottoman...
Persistent link: https://www.econbiz.de/10009283394
Business cycle fluctuations in developed economies (N) tend to have large and persistent effects on developing countries (S). We study the transmission of business cycle fluctuations for developed to developing economies with a two-country asymmetric DSGE model with two features: (i) endogenous...
Persistent link: https://www.econbiz.de/10009322501
We analyze a firm that produces a final good from multiple intermediates that can each be sourced domestically or from a low-wage country. The model explicitly incorporates that sourcing decisions of intermediates are interdependent. Equilibrium predictions depend crucially on a key modeling...
Persistent link: https://www.econbiz.de/10009324256
The literature has shown that the implied welfare gains from international financial integration are very small. We revisit the existing findings and document that welfare gains can be substantial if capital goods are not perfect substitutes. We use a model of optimal savings that includes a...
Persistent link: https://www.econbiz.de/10009364327
We study patterns of FDI in a multi-country world economy. First, we present evidence for a broad sample of countries … that firms direct FDI disproportionately to markets with income levels similar to their home market. Then we develop a …-driven and the decision to serve foreign countries via exports or FDI depends on a proximity-concentration trade-off. We …
Persistent link: https://www.econbiz.de/10009367424
industry-level predictions, working with a panel of U.S. data. Unlike the recent literature that works with FDI as a proxy for … exports the further away are host countries. Language and the presence of manufacturing FDI are also important. The impact of …
Persistent link: https://www.econbiz.de/10008554225
We develop a simple model to study the interactions between a supplier’s financial constraints and contract incompleteness in a vertical relationship. Production complexity increases the extent of contract incompleteness and the hold-up problem, which generates a cost when the supplier needs...
Persistent link: https://www.econbiz.de/10008530345