This paper examines the role of the market for high-skilled labor in explaining variation in the levels and dynamics of the service share, home production time, and market labor across countries. We establish and extend key facts for a cross-section of countries. First, growth in the total share...

We document that international transactions for narrowly defined goods occur infrequently. We study the implications of this lumpiness of international trade for the response of prices and quantities during large devaluations. Using a calibrated inventory management model of international trade...

The large, persistent fluctuations in international trade that cannot be explained in standard models by changes in expenditures and relative prices are often attributed to trade wedges. We show that these trade wedges can reflect the decisions of importers to change their inventory holdings. We...