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Voluntary Debt Reduction : Incentives and Welfare

Helpman, Elhanan - 2021

In an economy with a debt overhang, investment depends on expected tax rates. On the other hand, expected tax rates depend on the debt's face value. Therefore investment depends on the face value of debt. I show that this may lead to a positive or negative association between debt and investment...

Persistent link: https://www.econbiz.de/10013228742

Growth and Welfare in a Small Open Economy

Grossman, Gene M. - 2010

, and trades these at exogenously given world prices. We study the welfare implications of R&D subsidies and commercial … achieves the first-best rate of growth, but not the first-best level of welfare. Small tariffs and export subsidies also affect … both growth and welfare. Growth may increase or decrease, depending upon which sector is promoted by the trade policy. But …

Persistent link: https://www.econbiz.de/10013139328

Foreign Investment with Endogenous Protection

Grossman, Gene M. - 2011

welfare implications. We also allow for lobbying by workers with sector- specific skills and show how the conflicting …

Persistent link: https://www.econbiz.de/10013125846

A Linder Hypothesis for Foreign Direct Investment

Fajgelbaum, Pablo D. - 2014

We study patterns of FDI in a multi-country world economy. We develop a model featuring non-homothetic preferences for quality and monopolistic competition in which specialization is purely demand-driven and the decision to serve foreign countries via exports or FDI depends on a...

Persistent link: https://www.econbiz.de/10013067204

Balanced Growth Despite Uzawa

Grossman, Gene M. - 2016

The evidence for the United States points to balanced growth despite falling investment-good prices and an elasticity of substitution between capital and labor less than one. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa's theorem to show that the introduction of human...

Persistent link: https://www.econbiz.de/10013001767

Income Distribution, Product Quality, and International Trade

Fajgelbaum, Pablo D. - 2009

studying the welfare consequences of trade, transport costs, and trade policy for different income groups in an economy …

Persistent link: https://www.econbiz.de/10013156428

Inequality and Unemployment in a Global Economy

Helpman, Elhanan - 2010

within and between industries. While the opening of trade yields welfare gains, unemployment and inequality within sectors …

Persistent link: https://www.econbiz.de/10012758160

Wages, Unemployment and Inequality with Heterogeneous Firms and Workers

Helpman, Elhanan - 2010

In this paper we develop a multi-sector general equilibrium model of firm heterogeneity, worker heterogeneity and labor market frictions. We characterize the distributions of employment, unemployment, wages and income within and between sectors as a function of structural parameters. We find...

Persistent link: https://www.econbiz.de/10012759114

Real Wages, Monetary Accommodation, and Inflation

Helpman, Elhanan - 2010

We analyze the dynamics of inflation in an economy characterized by a forward-looking, staggered, price and wage determination process, and by monetary accommodation. In our model, inflation reconciles the conflicting claims of workers and firms. The model is capable of generating a positive...

Persistent link: https://www.econbiz.de/10012760153

Separation of Powers and the Budget Process

Grossman, Gene M. - 2010

We study budget formation in a model featuring separation of powers. In our model, the legislature designs a budget bill that can include a cap on total spending and earmarked allocations to designated public projects. Each project provides random benefits to one of many interest groups. The...

Persistent link: https://www.econbiz.de/10012761271