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Inflationary Consequences of Anticipated Macroeconomic Policies

Drazen, Allan - 1986

We consider a model in which the level of taxes and seignorage are too low to finance government expenditures and debt service. Government debt will therefore grow without bound, implying the eventual need to change policy. Starting with utility maximization, we analyze the effect of the...

Persistent link: https://www.econbiz.de/10012477065

Exchange Rate Management : Intertemporal Tradoffs

Helpman, Elhanan - 1985

The management of the exchange rate is possible only if the government pursues a monetary-fiscal policy mix which is consistent with its exchange rate targets. In this paper with uncertainty concerning the length of individual life the real consequences of exchange rate management depend on the...

Persistent link: https://www.econbiz.de/10012477494

Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality

Helpman, Elhanan - 2010

Recent research has emphasized firm heterogeneity as a source of comparative advantage. Combining this approach with … labor market frictions and worker heterogeneity provides a framework for studying the impact of trade on unemployment and …

Persistent link: https://www.econbiz.de/10012462891

Income Distribution, Product Quality, and International Trade

Fajgelbaum, Pablo D. - 2009

We develop a framework for studying trade in vertically and horizontally differentiated products. In our model, consumers with heterogeneous incomes and tastes purchase a homogeneous good as well as making a discrete choice of quality and variety of a differentiated product. The distribution of...

Persistent link: https://www.econbiz.de/10012463321

Inequality and Unemployment in a Global Economy

Helpman, Elhanan - 2008

This paper develops a new framework for examining the distributional consequences of trade liberalization that is consistent with increasing inequality in every country, growth in residual wage inequality, rising unemployment, and reallocation within and between industries. While the opening of...

Persistent link: https://www.econbiz.de/10012464169

Wages, Unemployment and Inequality with Heterogeneous Firms and Workers

Helpman, Elhanan - 2008

In this paper we develop a multi-sector general equilibrium model of firm heterogeneity, worker heterogeneity and labor … as a function of structural parameters. We find that greater firm heterogeneity increases unemployment, wage inequality … and income inequality, whereas greater worker heterogeneity has ambiguous effects. We also find that labor market …

Persistent link: https://www.econbiz.de/10012464522

Separation of Powers and the Budget Process

Grossman, Gene M. - 2006

We study budget formation in a model featuring separation of powers. In our model, the legislature designs a budget bill that can include a cap on total spending and earmarked allocations to designated public projects. Each project provides random benefits to one of many interest groups. The...

Persistent link: https://www.econbiz.de/10012466333

Trade, FDI, and the Organization of Firms

Helpman, Elhanan - 2006

investment patterns, and the reorganization of production across national borders. Although traditional trade theory has much to … are organizational features, such as sourcing strategies. But the theory has gone beyond the individual firm, studying the …

Persistent link: https://www.econbiz.de/10012466577

Optimal Integration Strategies for the Multinational Firm

Grossman, Gene M. - 2003

We examine integration strategies of multinational firms that face a rich array of choices of international organization. Each firm in an industry must provide headquarter services from its home country, produce intermediate inputs, and assemble the intermediate goods into final products. Both...

Persistent link: https://www.econbiz.de/10012468505

Outsourcing versus FDI in Industry Equilibrium

Grossman, Gene M. - 2002

We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which producers need specialized components. Potential suppliers must make a relationship-specific investment in order to serve each prospective customer. Such investments are governed by...

Persistent link: https://www.econbiz.de/10012469406