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A market-size-only theory of industrialization cannot explain why England developed nearly two centuries before China. One shortcoming of such a theory is its exclusive focus on producers. We show that once we incorporate the incentives of factor suppliers' organizations such as craft guilds,...
Persistent link: https://www.econbiz.de/10012916601
The views expressed herein are those of the authors and do not necessarily represent the views of the Federal Reserve Bank of Richmond or the Federal Reserve System. We thank Eric LaRose and Sara Ho for outstanding research assistance.Using U.S. NETS data, we present evidence that the positive...
Persistent link: https://www.econbiz.de/10012910661
This paper investigates competition between jurisdictions in the context of cross-border shopping for state lottery tickets. We first develop a simple theoretical model in which consumers choose between state lotteries and face a trade-off between travel costs and the price of a fair gamble,...
Persistent link: https://www.econbiz.de/10013224412
We consider a model with several regions whose technological ability and factor endowments are identical and in which transport costs between regions are non-negligible. Nonetheless, certain goods are sometimes produced by multiple firms all of which are located in the same region. These goods...
Persistent link: https://www.econbiz.de/10013230988
In markets where spatial competition is important, many models predict that average prices are lower in denser markets (i.e., those with more producers per unit area). Homogeneous-producer models attribute this effect solely to lower optimal markups. However, when producers instead differ in...
Persistent link: https://www.econbiz.de/10012767333
paper begins with a discussion of the positive theory of wage taxation and labor supply under uncertainty. This is followed … simultaneous uncertainty and inequality is discussed. In this part of the paper it is assumed that the government's objective is to …
Persistent link: https://www.econbiz.de/10014156764
We review the literature on uncertainty shocks and business cycle research. First, we motivate the study of uncertainty … mechanisms that researchers have postulated to link uncertainty shocks and business cycles. Third, we outline how we can specify … uncertainty shocks. Fourth, we postulate a real business cycle model augmented with financial frictions and uncertainty shocks …
Persistent link: https://www.econbiz.de/10014101580
uncertainty, a 5.5 percent log return would permit the benchmark benefits to be purchased with PRA deposits of 3.1 percent of …
Persistent link: https://www.econbiz.de/10014138416
We propose a new approach to identify the strength of the precautionary motive and the extent of self-insurance in response to earnings risk based on Euler equation estimates. To address endogeneity problems, we use Norwegian administrative data and instrument consumption and earnings volatility...
Persistent link: https://www.econbiz.de/10012962717
The magnitude of and heterogeneity in systematic earnings risk has important implications for various theories in macro, labor, and financial economics. Using administrative data, we document how the aggregate risk exposure of individual earnings to GDP and stock returns varies across gender,...
Persistent link: https://www.econbiz.de/10012963164