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Uncertainty in global sourcing : learning, sequential offshoring, and selection patterns

Larch, Mario; Navarro, Leandro - 2022

uncertainty by observing offshoring firms' behaviour. The model characterises a sequential offshoring equilibrium path, led by the … Colombia, we test for the determinants and timing of offshoring decisions. We also derive spatial probit structural models to … identify the firms' dynamic trade-off when they decide on the offshoring location. We find supportive evidence for the model …

Persistent link: https://www.econbiz.de/10013419347

Maquiladoras and informality : a mixed blessing

Heid, Benedikt; Larch, Mario; Riaño, Alejandro - 2011

the equilibrium with an informal sector. -- offshoring ; informal sector ; maquiladoras ; trade and labor markets ; Mexico …

Persistent link: https://www.econbiz.de/10009489292

Unemployment in an interdependent world

Felbermayr, Gabriel; Larch, Mario; Lechthaler, Wolfgang - 2009

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...

Persistent link: https://www.econbiz.de/10003887183

Comparative advantage and skill-specific unemployment

Larch, Mario; Lechthaler, Wolfgang - 2009

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...

Persistent link: https://www.econbiz.de/10003872799

Why "buy American" is a bad idea but politicians still like it

Larch, Mario; Lechthaler, Wolfgang - 2010

When the world economy was recently hit by a severe recession, governments all over the world reacted by initiating stimulus packages. Some countries (among them, most notably, China and the US) tried to put special emphasis on their home industries by including "Buy local" clauses into the...

Persistent link: https://www.econbiz.de/10008697408

Capacity constraining labor market frictions in a global economy

Holzner, Christian; Larch, Mario - 2011

Convex vacancy creation costs shape firms' responses to trade liberalization. They induce capacity constraints by increasing firms' cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...

Persistent link: https://www.econbiz.de/10009307959

Icebergs versus tariffs : a quantitative perspective on the gains from trade

Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario - 2013

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize...

Persistent link: https://www.econbiz.de/10009724020

Spatial exporters

Defever, Fabrice; Heid, Benedikt; Larch, Mario - 2011

In this paper, we provide evidence that expanding firms tend to serve new markets which are geographically close and culturally related to their prior export destinations. We quantify the impact of this spatial pattern using a Chinese firm-level data set. To ensure an exogenous set of potential...

Persistent link: https://www.econbiz.de/10009388381

Optimal tariffs, retaliation and the welfare loss from tariff wars in the Melitz model

Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario - 2011

This paper characterizes analytically the optimal tariff of a large one-sector economy with monopolistic competition and firm heterogeneity in general equilibrium, thereby extending the small-country results of Demidova and Rodriguez-Clare (JIE, 2009) and the homogeneous firms framework of Gros...

Persistent link: https://www.econbiz.de/10009130204

Gravity Redux: Estimation of gravity-equation coefficients, elasticities of substitution, and general equilibrium comparative statics under asymmetric bilateral trade costs

Bergstrand, Jeffrey H.; Egger, Peter; Larch, Mario - In: Journal of International Economics 89 (2013) 1, pp. 110-121

A large class of models with CES utility and iceberg trade costs are now known to generate isomorphic “gravity equations.” Economic interpretations of these gravity equations vary in terms of two basic elements: the exporter's “mass” variable and the elasticity of trade with respect to...

Persistent link: https://www.econbiz.de/10011056323