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This paper contrasts the properties of dynamic Heckscher-Ohlin models with overlapping generations with those of models with infinitely lived consumers. In both environments, if capital is mobile across countries, factor price equalization occurs after the initial period. In general, however,...
Persistent link: https://www.econbiz.de/10012778283
necessary and sufficient conditions for the effects on wages, prices, production and trade. We show that offshoring requires …
Persistent link: https://www.econbiz.de/10012760292
This paper explores the use of structural models as an alternative to reduced form methods when decomposing observed joint trade and technology driven wage changes into components attributable to each source. Conventional mobile factors Heckscher-Ohlin models typically reveal problems of...
Persistent link: https://www.econbiz.de/10012763352
level production data, we find robust evidence in support of causal effects of minimum wage consistent with our theoretical …
Persistent link: https://www.econbiz.de/10012922983
Examining the relationship between factor endowments and production patterns using international and Japanese regional … find evidence of substantial production indeterminacy. Prediction errors are six to thirty times larger for goods traded …
Persistent link: https://www.econbiz.de/10013216107
The U.K. skill premium fell from the 1950s to the late 1970s and then rose very sharply. This paper examines the contributions to these relative wage movements of international trade and technical change. We first measure trade as changes in product prices and technical change as TFP growth....
Persistent link: https://www.econbiz.de/10013218091
It has been alleged that multinational firms fail to adapt their methods of production to take advantage of the …-intensive methods of production in LDC's than in developed countries and do multinational firms' affiliates in LDC's use more capital … cost, using the most capital-intensive methods of production at home and the least capital-intensive methods in low …
Persistent link: https://www.econbiz.de/10013232175
a factor endowments theory, is instead the conduit for a great deal of this factor service trade …
Persistent link: https://www.econbiz.de/10013234036
-stage production, and country-specific trade costs. We derive patterns of production specialization and trade for a matrix of countries … that differ in relative endowments (columns) and trade costs (rows). We demonstrate how the ability to fragment production … and/or a proportional change in all countries' trade costs alters these patterns. Production specialization and the volume …
Persistent link: https://www.econbiz.de/10013240566
, production, absorption and trade fit together within a general equilibrium framework. Already a great deal of progress has been …
Persistent link: https://www.econbiz.de/10013248234