We examine the quantitative predictions of heterogeneous firm models à la Melitz (2003) in the context of the Canada … - US Free Trade Agreement (CUSFTA) of 1989. We compute predicted increases in trade flows and measured productivity across … fundamental problem which most models we analyse face: predicted increases in measured productivity are too low by an order of …

This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically … competitive labour markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting … labour market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for …

Recent empirical studies have been searching for evidence on and driving forces for offshoring. Frequently, this has … competing with the role of multilateral trade resistance. Our results support evidence for offshoring activities across Europe … rest of the world. -- international trade ; gravity model ; offshoring ; panel data ; European Union …

Why do cities differ so much in productivity? We document that most of the measured dispersion in productivity across … US cities is spurious and reflects granularity bias: idiosyncratic heterogeneity in plant-level productivity and size …

incentives by firms. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous …

quality of service. To test these reasonings, the paper draws empirical evidence from the health systems of Australia, Canada …