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Local social capital and geographical mobility : a theory
David, Quentin (contributor); Janiak, Alexandre (contributor) - 2008
In this paper, we attempt to understand the determinants of mobility by introducing the concept of local social capital. Investing in local ties is rational when workers anticipate that they will not move to another region. Reciprocally, once local social capital is accumulated, incentives to...
Persistent link: https://www.econbiz.de/10003752851
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Trade and location with land as a productive factor
Pflüger, Michael (contributor);  … - 2008
received no attention in the new trade theory and the new economic geography. We set up a simple monopolistic competition model … labor, a number of tenets of the new trade and geography literature no longer hold. We also show that in order to explain …
Persistent link: https://www.econbiz.de/10003759291
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On pitchforks and tomahawks
Pflüger, Michael (contributor); Südekum, Jens (contributor) - 2007
The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide...
Persistent link: https://www.econbiz.de/10003652668
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Towards a unifying approach of the 'new economic geography'
Pflüger, Michael (contributor); Südekum, Jens (contributor) - 2006
Models of the new economic geography share a number of common conclusions, but also exhibit notable differences, in particular with respect to the shape of the location pattern and the efficiency of the market equilibrium. This reflects the fact that these models rely heavily on specific...
Persistent link: https://www.econbiz.de/10003355651
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Subsidizing firm entry in open economies
Pflüger, Michael; Südekum, Jens - 2009
Entrepreneurs who decide to enter an industry are faced with different levels of effective entry costs in different countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects the government incentive to impact on entry costs,...
Persistent link: https://www.econbiz.de/10003894876
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Commuting, wages and bargaining power
Rupert, Peter; Stancanelli, Elena G. F.; Wasmer, Etienne - 2009
A search model of the labor market is augmented to include commuting time to work. The theory posits that wages are … impact of commute time on job acceptance decisions. We also use the theory to calculate the bargaining power of workers which …
Persistent link: https://www.econbiz.de/10003905644
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Layoff costs and efficiency with asymmetric information
Delacroix, Alain; Wasmer, Etienne - 2009
Wage determination under asymmetric information generates inefficiencies due to excess turnover. Severance pay and layoff taxes can improve efficiency. We show that inefficient separations can even be fully removed with fixed separation taxes in the case where the relevant private information is...
Persistent link: https://www.econbiz.de/10003906313
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A simple theory of industry location and residence choice
Borck, Rainald (contributor); Pflüger, Michael (contributor) - 2007
This paper provides a simple theory of geographical mobility which simultaneously explains people’s choice of … of production which seeks to obtain the highest possible economic return. Our theory comprehends applications to …
Persistent link: https://www.econbiz.de/10003608325
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Macroeconomic dynamics in a model of goods, labor and credit market frictions
Petrosky-Nadeau, Nicolas; Wasmer, Etienne - 2011
Building a model with three imperfect markets - goods, labor and credit - representing a product's life-cycle, we find … that goods market frictions drastically change the qualitative and quantitative dynamics of labor market variables. The … search models of the labor market fail in one of the two dimensions. Two factors related to goods market frictions generate …
Persistent link: https://www.econbiz.de/10009307979
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A steady-state model of a non-walrasian economy with three imperfect markets
Wasmer, Etienne - 2011
Unemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by … introducing search frictions on several markets: in a model of credit and labor market imperfections as in Wasmer and Weil (2004 …
Persistent link: https://www.econbiz.de/10009308020