Showing 1 - 10 of 41
More advanced technologies demand higher degrees of specialization - and longer chains of production connecting raw inputs to final outputs. Longer production chains are subject to a "weakest link" effect: they are more fragile and more prone to failure. Optimal chain length is determined by the...
Persistent link: https://www.econbiz.de/10013135410
the U.S. despite increased import competition and ongoing currency undervaluation. To explain firm responses to … with undervalued exchange rates will lead to fewer antidumping filings. Examining the universe of U.S. manufacturing firms … undervalued currencies significantly decrease (increase) the likelihood of U.S. antidumping petitions. Our study highlights the …
Persistent link: https://www.econbiz.de/10013078827
-Saxon countries (the US and the UK), two Continental European countries (France and Germany) and two Scandinavian countries (Norway … probabilities observed in US, with mixed success in Europe. In contrast, matching shocks and job destruction shocks play a larger … role in most European countries relative to the US …
Persistent link: https://www.econbiz.de/10013114011
This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a financial crisis, since for the expansion phase of the...
Persistent link: https://www.econbiz.de/10013123693
We consider trade between a flexible wage America and a rigid real wage Europe. In a benchmark case, a move from autarky to free trade doubles the European unemployment rate, while it raises the American unskilled wage to the high European level. Entry of the unskilled South to world markets...
Persistent link: https://www.econbiz.de/10013125263
This paper uses a sample of 116 recession episodes in developed and emerging market economies to compare the labor-market recovery during financial crises with that of other recession episodes. It documents two new stylized facts. First, labor-market recovery from financial crises is...
Persistent link: https://www.econbiz.de/10013099123
In the post Lehman period, the interest rate of the US dollar became low on the forward contract because of“flight to … deviations in the global financial crisis (GFC), while EU banks' credit risk and market risk were useful in explaining the … deviations in the Euro crisis. In particular, EU banks' credit risk and market risk had asymmetric effect on the deviations. The …
Persistent link: https://www.econbiz.de/10012999986
Recent dramatic declines in U.S. stock and housing markets have led to widespread speculation that shrinking retirement …
Persistent link: https://www.econbiz.de/10013150735
between the EU and US going back to 1980. This paper is about the strong negative tradeoff between productivity and employment …, productivity growth in the EU-15 has slowed while that in the United States has accelerated. But Europe's productivity growth … employment growth across countries and time. Our primary explanatory variables to explain both the revival of EU employment …
Persistent link: https://www.econbiz.de/10012772452
This paper investigates the consequences of fiscal policies for the exchange rate. After developing a simple theory of how government financing policies should effect the exchange rate, we test it using data on the dollar/pound exchange rate. Previous analyses have concentrated mainly on the...
Persistent link: https://www.econbiz.de/10012777221