This dissertation consists of three chapters.Chapter 2 analyzes the reallocation of labor following a trade liberalization. Theseepisodes typically display three features: slow net absorption of labor by export-orientedsectors, large reallocation costs for displaced workers, and a...

This thesis consists of three chapters. The first chapter investigates how the functional operator used in Kocherlakota (1996) is linked to the game underlying the model. Using the machinery developed by Abreu et al. (1990) (APS) I solve for the set of equilibrium value profiles directly....