model, incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to … the standard search and matching model. -- monetary persistence ; labor market ; hiring and firing costs …

equations, trade is more sensitive to trade costs if the exporting country only provides a small share of the destination … country's imports. As a result, trade costs have a heterogeneous impact across country pairs, with some trade flows predicted … modest or indistinguishable from zero. -- translog ; trade costs ; gravity ; currency union ; monopolistic competition …

trade costs that indirectly infers trade frictions from observable trade data. I show that this trade cost measure is … show that U.S. trade costs with major trading partners declined on average by about 40 percent between 1970 and 2000, with … Mexico and Canada experiencing the biggest reductions. -- trade costs ; gravity ; multilateral resistance ; Ricardian trade …

within education groups, our theory helps to explain (1) rising wage inequality between groups, and (2) rising wage …

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …