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International Welfare and Employment Linkages Arising from Minimum Wages
Egger, Hartmut - 2010
We formulate a two-country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor-market imperfections arise by virtue of country-specific real minimum wages. Two principal experiments are considered. First, we show that trade...
Persistent link: https://www.econbiz.de/10013151811
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Tariff Reductions, Entry, and Welfare : Theory and Evidence for the Last Two Decades
Caliendo, Lorenzo - 2015
We show in a multi-sector, heterogeneous-firm trade model that the effect of tariffs on entry, especially in the presence of production linkages, can reverse the traditional positive optimal tariff argument. We then use a new tariff dataset, and apply it to a 189-country, 15-sector version of...
Persistent link: https://www.econbiz.de/10013010722
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On the Desirability of Capital Controls
Heathcote, Jonathan - 2016
In a standard two country international macro model we ask whether imposing restrictions on international non-contingent borrowing and lending is ever desirable. The answer is yes. If one country imposes capital controls unilaterally, it can generate favorable changes in the dynamics of...
Persistent link: https://www.econbiz.de/10013001194
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Does Exchange Rate Risk Matter for Welfare?
Bergin, Paul R. - 2010
Volatility in exchange rates is a prominent feature of open economies, a fact which has motivated elaborate attempts in many countries at exchange rate management. This paper analyzes quantitatively the welfare effects of exchange rate risk in a general two-country environment. It finds that the...
Persistent link: https://www.econbiz.de/10012762793
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International Financial Integration and Crisis Contagion
Devereux, Michael B. - 2014
International financial integration helps to diversify risk but also may increase the trans- mission of crises across countries. We provide a quantitative analysis of this trade-off in a two-country general equilibrium model with endogenous portfolio choice and collateral con- straints....
Persistent link: https://www.econbiz.de/10013046603
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Foreign Influence and Welfare
Antras, Pol; Padró i Miquel, Gerard - 2021
How do foreign interests influence the policy determination process? What are the welfare implications of such foreign influence? In this paper we develop a model of foreign influence and apply it to the study of optimal tariffs. We develop a two-country voting model of electoral competition,...
Persistent link: https://www.econbiz.de/10013248149
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International Credit Flows and Pecuniary Externalities
Brunnermeier, Markus K. - 2015
This paper develops a dynamic two-country neoclassical stochastic growth model with incomplete markets. Short …
Persistent link: https://www.econbiz.de/10013031034
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Trade, Unemployment, and Monetary Policy
Cacciatore, Matteo; Ghironi, Fabio Pietro - 2022
We study how trade linkages affect the conduct of monetary policy in a two-country model with heterogeneous firms, endogenous producer entry, and labor market frictions. We show that the ability of the model to replicate key empirical regularities following trade integration---synchronization of...
Persistent link: https://www.econbiz.de/10013307732
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Technology and Geography in the Second Industrial Revolution : New Evidence from the Margins of Trade
Huberman, Michael - 2015
In the Belle Époque, Belgium recorded an unprecedented trade boom, but growth in output per capita was lackluster. We …
Persistent link: https://www.econbiz.de/10013030134
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Growth and Welfare in a Small Open Economy
Grossman, Gene M. - 2010
We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop … policy. There exists an optimal subsidy to R&D that speeds growth relative to the market-determined rate. The optimal subsidy … achieves the first-best rate of growth, but not the first-best level of welfare. Small tariffs and export subsidies also affect …
Persistent link: https://www.econbiz.de/10013139328