In this paper we explore alternative models for insurance and incentives problems and assess them in terms of the implied behavior for human capital investment, consumption and default. We consider models with exogenously specified market incompleteness as well as models in which imperfect...

We develop a dynamic labor search model where production and consumption take place in spatially distinct labor markets with varying exposure to domestic and international trade. The model recognizes the role of labor mobility frictions, goods mobility frictions, geographic factors, and...