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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/10011509468
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/10011515400
The United States introduced Federal Trade Adjustment Assistance (TAA) as part of the 1962 Trade Expansion Act to dampen the adverse impact of increased trade on workers. Applications to receive TAA require approval from the Department of Labor. Guided by the technical criteria used by the U.S....
Persistent link: https://www.econbiz.de/10011414675
Are retaliatiory tariffs politically targeted and, if so, are they effective? Do countries designing a retaliation response face a trade-off between maximizing political targeting and mitigating domestic economic harm? We use the recent trade escalation between the US, China, the European Union...
Persistent link: https://www.econbiz.de/10011986148
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/10012510016
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/10010229883
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/10012162484
earnings and riskier employment prospects. However, they may also have stronger incentives to train and upgrade their skills …
Persistent link: https://www.econbiz.de/10008697164
empirical results that help distinguishing 'good' from 'bad' jobs in terms of their impact on a worker's lifetime wage income … profile through wage jumps occurring upon changing job ('static effects') or through increases in the wage growth rate … empirical dividing line between employers providing 'good' and 'bad' jobs. First, in internationally active firms the experience-wage …
Persistent link: https://www.econbiz.de/10012249047
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/10012806478