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fundamental tension which is intricately affected by trade costs. A reduction of trade costs fosters the dispersive impact of … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … reductions in the increasing returns sector. The key implication for international trade is that the wage ratio between large and …
Persistent link: https://www.econbiz.de/10012981495
In this paper, we describe a novel iterative procedure called SISTA to learn the underlying cost in optimal transport problems. SISTA is a hybrid between two classical methods, coordinate descent ("S"-inkhorn) and proximal gradient descent ("ISTA"). It alternates between a phase of exact...
Persistent link: https://www.econbiz.de/10013225545
for global inequality. We develop and parameterize a two-sector, two-class, world economy model that endogenizes education … in the world distribution of skills, slow-growing urbanization in developing countries and a rebound in income inequality …
Persistent link: https://www.econbiz.de/10012910758
Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from fierce competition in thick labour markets. We first establish that employers possess less wage-setting power in denser markets. Local differences in wage-setting power predict...
Persistent link: https://www.econbiz.de/10013001328
This paper examines the role of regional aggregation in measuring agglomeration externalities. Using Dutch administrative data, we define local labour markets (LLMs) based on the worker's commuting outcomes, gender and educational attainment, and show that high-educated workers and male workers...
Persistent link: https://www.econbiz.de/10012859286
The direct impact of local public goods on welfare is relatively easy to measure from land rents. However, the indirect effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial general equilibrium model for the valuation of these...
Persistent link: https://www.econbiz.de/10013049070
density on productivity but we also consider many other local determinants supported by theory. Empirical issues are then …
Persistent link: https://www.econbiz.de/10013046226
A prominent feature of economic geography in America is the positive correlation amongst local incomes, housing costs and city population. This paper embeds a "black box" agglomeration economy within a more neoclassical general equilibrium model of local wages, rents and population to assess the...
Persistent link: https://www.econbiz.de/10013325076
I analyze whether reducing geographic distance to high-wage jobs increases access to those employment opportunities. I collect office locations and campus recruiting strategies for over 70 prestigious banking and consulting firms, from 2000 to 2013. Using an event-study framework, I find firms...
Persistent link: https://www.econbiz.de/10012940833
, colonial origin, bilateral trade relationships, foreign aid flows, political regime forms, or the characteristics of the Cold …
Persistent link: https://www.econbiz.de/10013056248