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Firm Entry, Trade, and Welfare in Zipf's World
di Giovanni, Julian - 2010
Firm size follows Zipf's Law, a very fat-tailed distribution that implies a few large firms account for a disproportionate share of overall economic activity. This distribution of firm size is crucial for evaluating the welfare impact of economic policies such as barriers to entry or trade...
Persistent link: https://www.econbiz.de/10013138768
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Transition to FDI Openness : Reconciling Theory and Evidence
McGrattan, Ellen R. - 2011
conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is … consistent with theory if countries are in transition to FDI openness. Anticipated welfare gains lead to temporary declines in … reconciliation of theory and evidence is accomplished with a multicountry dynamic general equilibrium model parameterized with data …
Persistent link: https://www.econbiz.de/10013130264
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Welfare Costs of Long-Run Temperature Shifts
Bansal, Ravi - 2011
This article makes a contribution towards understanding the impact of temperature fluctuations on the economy and financial markets. We present a long-run risks model with temperature related natural disasters. The model simultaneously matches observed temperature and consumption growth...
Persistent link: https://www.econbiz.de/10013118836
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Rare Disasters, Asset Prices, and Welfare Costs
Barro, Robert J. - 2007
A representative-consumer model with Epstein-Zin-Weil preferences and i.i.d. shocks, including rare disasters, accords with key asset-pricing observations. If the coefficient of relative risk aversion equals 3-4, the model accords with observed equity premia and risk-free real interest rates. If...
Persistent link: https://www.econbiz.de/10012775474
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Financial Integration and Liquidity Crises
Castiglionesi, Fabio - 2017
The paper analyzes the effects of financial integration on the stability of the banking system. Financial integration allows banks in different regions to smooth local liquidity shocks by borrowing and lending on a world interbank market. We show under which conditions financial integration...
Persistent link: https://www.econbiz.de/10012957374
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Open Access as a Crude Solution to a Hold-Up Problem in the Two-Sided Market for Academic Journals
McCabe, Mark J. - 2019
The move from traditional to open-access journals—which charge no subscription fees, only submission fees—is gaining support in academia. We analyze a two-sided-market model in which journals cannot commit to subscription fees when authors (who prefer low subscription fees because this...
Persistent link: https://www.econbiz.de/10012903350
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Overlapping Climate Policies
Perino, Grischa - 2019
Major carbon-pricing systems in Europe and North America involve multiple jurisdictions (countries or states). Individual jurisdictions often pursue additional initiatives—such as unilateral carbon price floors, legislation to phase out coal, aviation taxes or support programs for renewable...
Persistent link: https://www.econbiz.de/10012890770
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How Big are the Gains from International Financial Integration?
Hoxha, Indrit - 2010
The literature has shown that the implied welfare gains from international financial integration are very small. We revisit the existing findings and document that welfare gains can be substantial if capital goods are not perfect substitutes. We use a model of optimal savings that includes a...
Persistent link: https://www.econbiz.de/10012758019
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Optimal Migration : A World Perspective
Benhabib, Jess - 2010
We ask what level of migration would maximize world welfare. We find that skill-neutral policies are never optimal. An egalitarian welfare function induces a policy that entails moving mainly unskilled immigrants into the rich countries, whereas a welfare function skewed highly towards the rich...
Persistent link: https://www.econbiz.de/10012760411
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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