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The objective of this manuscript is to serve as a practical guide for estimations with the structural gravity model. After a brief review of the theoretical foundations, we summarize the main challenges with gravity estimations and we review the solutions to address those challenges. Then, we...
Persistent link: https://www.econbiz.de/10011522509
The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a...
Persistent link: https://www.econbiz.de/10011522520
The gravity equation is the workhorse model for analysis of bilateral trade flows. Despite solid theoretical foundations and clear gains from theory-consistent policy analysis, there are still gaps between gravity theory and empirics. This paper focuses on domestic trade flows, and I argue that...
Persistent link: https://www.econbiz.de/10012582120
This paper finds a link between the sharp drop in U.S. manufacturing employment beginning in 2001 and a change in U … declines the most experience more severe employment losses along with larger increases in the value of imports from China and … employment loss, and we show that the U.S. employment trends differ from those in the EU, where there was no change in policy. …
Persistent link: https://www.econbiz.de/10010328710
The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age … and we show that higher minimum wage can raise aggregate employment. Expansion in the non-traded sector following a wage …
Persistent link: https://www.econbiz.de/10012179889
In recent years wages in China have been rising and the yuan has appreciated, potentially eroding China's cost advantage in manufactures. This paper explores the evolution of China's relative unit labor costs in manufacturing over 1998-2009. Between 1998 and 2003 China's unit labor costs fell,...
Persistent link: https://www.econbiz.de/10010278853
This paper identifies globalization as a factor behind the rapid increase in executive compensation and inequality over ….S. inequality than previously thought, and that both higher returns to top talent and rent-capture are important parts of this story. …
Persistent link: https://www.econbiz.de/10011777566
higher import and consumer prices, lower investment, and slower real wage and GDP growth. However, at the aggregate level …
Persistent link: https://www.econbiz.de/10013177575
European integration, which culminated in the completion of the Single Market, the single currency and successive enlargements, is now faced with the question of strategic autonomy. Against this backdrop, the present paper has three objectives. First, it assesses the benefits of EU membership...
Persistent link: https://www.econbiz.de/10015047259
, employment and productivity) downsizing. Unemployment insurance and cash transfers yield limited wage loss replacement (6 percent … the universe of cash transfer, unemployment insurance, and training beneficiaries. Negative employment effects take over a … decade to dissipate fully, wage effects persist, and firm restructuring involves occupational adjustment, increasing …
Persistent link: https://www.econbiz.de/10014377453