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Grossman, Gene M. - 2002

We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are governed by incomplete contracts. The extent of...

Persistent link: https://www.econbiz.de/10012469987

Measuring the Gains from Trade under Monopolistic Competition

Feenstra, Robert C. - 2009

Three sources of gains from trade under monopolistic competition are: (i) new import varieties available to consumers; (ii) enhanced efficiency as more productive firms begin exporting and less productive firms exit; (iii) reduced markups charged by firms due to import competition. The first...

Persistent link: https://www.econbiz.de/10012463056

Income Distribution, Product Quality, and International Trade

Fajgelbaum, Pablo D. - 2009

We develop a framework for studying trade in vertically and horizontally differentiated products. In our model, consumers with heterogeneous incomes and tastes purchase a homogeneous good as well as making a discrete choice of quality and variety of a differentiated product. The distribution of...

Persistent link: https://www.econbiz.de/10012463321

Measuring the Welfare Effect of Quality Change : Theory and Application of Japanese Autos

Feenstra, Robert C. - 1993

The purpose of this paper is to identify conditions under which hedonic price indexes provide an exact measure of consumer welfare, so that the welfare effects of quality change can be inferred. Our results are quite positive in providing a rational for existing practices, though the conditions...

Persistent link: https://www.econbiz.de/10012474550

Growth and Welfare in A Small Open Economy

Grossman, Gene M. - 1989

We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits exceeds the cost of R&D. Diversity of intermediates contributes to total factor productivity in the...

Persistent link: https://www.econbiz.de/10012476078

Tariff Reductions, Entry, and Welfare : Theory and Evidence for the Last Two Decades

Caliendo, Lorenzo - 2015

In a standard multi-sector, heterogeneous-firm trade model the effect of tariffs on entry, especially in the presence of production linkages, can reverse the traditional positive optimal-tariff argument. We construct and employ a new, large, disaggregated tariff dataset and then apply a...

Persistent link: https://www.econbiz.de/10012456903

The impact of international trade on wages

Feenstra, Robert C. (ed.) - 2000

an increasing share of available income, while low-skilled workers have seen an absolute decline in real wages. How and … escalation of high-skill wages. This collection brings together innovative new ideas and data sources in order to provide more … on U.S. wages. This timely volume offers a thorough appraisal of the wage distribution predicament, examining the …

Persistent link: https://www.econbiz.de/10001433753

Inflationary Consequences of Anticipated Macroeconomic Policies

Drazen, Allan - 1986

We consider a model in which the level of taxes and seignorage are too low to finance government expenditures and debt service. Government debt will therefore grow without bound, implying the eventual need to change policy. Starting with utility maximization, we analyze the effect of the...

Persistent link: https://www.econbiz.de/10012477065

Exchange Rate Management : Intertemporal Tradoffs

Helpman, Elhanan - 1985

The management of the exchange rate is possible only if the government pursues a monetary-fiscal policy mix which is consistent with its exchange rate targets. In this paper with uncertainty concerning the length of individual life the real consequences of exchange rate management depend on the...

Persistent link: https://www.econbiz.de/10012477494

Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality

Helpman, Elhanan - 2010

Recent research has emphasized firm heterogeneity as a source of comparative advantage. Combining this approach with labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and inequality. This paper reviews this approach and reports...

Persistent link: https://www.econbiz.de/10012462891