Showing 1 - 10 of 42
attributed to aggregate proxies of agglomeration externalities. Our data further support the assortative matching hypothesis …, that is'good' workers match on the labor market with 'good' firms, and we further show that assortative matching is not … driven by a co-location of workers and firms of similar quality. Finally, we point out that this assortative matching is …
Persistent link: https://www.econbiz.de/10005008356
This paper considers whether countries might mutually agree a policy of open borders, allowing free movement of workers across countries. For the countries to agree, the short run costs must outweighed by the long term benefits that result from better labor market flexibility and income...
Persistent link: https://www.econbiz.de/10010927689
In this paper, we study market liberalization in an imperfectly competitive environment in the presence of price effects. For this purpose, we build a three-country model of international trade under monopolistic competition with endogenous prices and wages. The neighboring effect translates how...
Persistent link: https://www.econbiz.de/10010610456
Governments set numerous norms to protect consumers. Two countries may achieve the same level of protection of their consumers through different specifications. The adaptation costs induced by these differences create barriers to trade. The principle of mutual recognition addresses the problem...
Persistent link: https://www.econbiz.de/10008550248
This paper focuses on two distint facets of globalization: the decrease in the trade costs of goods and the decline of communication costs between headquarters and production facilities within firms. When the unskilled have about the same wage in the two regions, the decrease of these costs...
Persistent link: https://www.econbiz.de/10005008176
We investigate an economic geography model in which agricultural goods are costly to transport and in which manufactures hire labor from the local agricultural sector as unskilled labor. We show that agricultural transport costs and local-unskilled labor requirements in firms act as a dispersion...
Persistent link: https://www.econbiz.de/10005008199
This paper studies the interdependence of economic geography and transportation technology. A two-region model is used to obtain the conditions for the modern transportation technology to be adopted in an economy. In particular, the impact of economic geography upon the adoption of the modern...
Persistent link: https://www.econbiz.de/10005008408
In modern economies, the amount of profits distributed to shareholders is far from being negligible. We show that the way they are distributed among agents matters for the space-economy. For example, the existence of mobile rentiers is sufficient to make the symmetric configuration unstable for...
Persistent link: https://www.econbiz.de/10005008590
We analyze the equilibrium and the optimal resource allocations in a monocentric city under monopolistic competition. Unlike the constant elasticity of substitution (CES) case, where the equilibrium markups are independent of the city size, we present a variable elasticity of substitution (VES)...
Persistent link: https://www.econbiz.de/10005008619
We study the effects of a decrease in trade costs on the spatial distribution of industry in a multi-regional economy, when a rise in the regional population of workers generates higher urban costs. We show that high and low trade costs imply that all regions involve a positive share of the...
Persistent link: https://www.econbiz.de/10005065273