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 liberalization under minimum wages differs significantly from trade … workers at home and abroad. In an extension to our baseline model, we illustrate that offshoring production from the high …

This paper develops a simple theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite … international capital flows converge to zero. Although our theory emphasizes interest rate manipulation, the country's net financial …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …

propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins …