We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the …

if “cultural diversity” affects total factor productivity. We distinguish diversity in the establishment's workforce and … in the establishment or in the region – does not affect productivity. However, there are strong spillovers associated …

-size distribution? Do they affect individual city sizes? Do they contribute to the productivity advantage of large cities and the …

firms to leave the market, thereby affecting aggregate productivity. Since wage and productivity responses are endogenous …, our model is well suited to study the impacts of trade integration on aggregate productivity and factor prices. Using … Canada-U.S. interregional trade data, we first estimate a system of theory-based gravity equations under the general …

average productivity of firms in the market, thereby implying lower consumer prices and higher welfare. In an open economy …