In this paper, the authors analyze the optimal policies of two active countries toward international movement of both labor and capital in a two-stage noncooperative game. They show that a complete buyout of both factors by either country can never be a Nash equilibrium, although a partial...

This paper develops a measure of the change in welfare of a household or an economy due to exogenous shocks or policy changes. The measure can be applied in a wide range of economies of scale, imperfectly competitive markets, unemployment, and domestic distortionary taxes. The welfare change...