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In this paper we argue that strong political economy forces explain the rush of the EU to expand eastwards. We use a model of vertical product differentiation in order to claim that technologically- advanced EU firms (residing in high-income member countries) prefer a mutual market-opening with...
Persistent link: https://www.econbiz.de/10011409769
The paper argues that economic integration causes problems for the labor market of high-wage countries due to cross-border labor mobility and the accompanying increase in labor supply. Empirical evidence is provided from an analysis of regional labor market effects of German re-unification. In...
Persistent link: https://www.econbiz.de/10011402446
We analyze whether globalization affects the composition of public expenditures for education by integrating arguments … towards lower education. In industrialized countries, on the other hand, globalization has an ambiguous effect on the …-2006 period.--globalization ; public education ; composition of public spending …
Persistent link: https://www.econbiz.de/10003928775
In this paper we construct a Ricardian model of trade in vertically-differentiated products between a developing country and the (developed) rest of the world. Despite labour being the only factor of production in this model, tariffs (in addition to income taxes) have distributional consequences...
Persistent link: https://www.econbiz.de/10002757774
The paper develops a unified general equilibrium model including savings with overlapping generations, investment and search unemployment. Long-run analytical results for the small open economy identify capital accumulation as a prime transmission channel. The effects of integration on...
Persistent link: https://www.econbiz.de/10009781622
Persistent link: https://www.econbiz.de/10012798864
The relationship between the distribution of political rights and that of economic resources has been studied both theoretically and empirically. This paper reviews the existing literature and, in particular, the available empirical evidence.Our reading of the literature suggests that formal...
Persistent link: https://www.econbiz.de/10009781532
This paper employs a general equilibrium model of imperfect competition and trade in which capital is used to establish firms and labor is used for production. We show that two different types of equilibria may exist, one with factor price equalization and one with different factor prices. When...
Persistent link: https://www.econbiz.de/10009261843
A persistent criticism of general equilibrium models of monetary policy which incorporate nominal inertia in the form of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In this paper we derive a general equilibrium model based on...
Persistent link: https://www.econbiz.de/10011409738
EU and OECD countries. The estimation approach accounts for firm heterogeneity and selection bias in a panel …
Persistent link: https://www.econbiz.de/10010383871