Since static models of partial factor mobility cannot be interpreted dynamically to explain factor accumulation and reallocation over time this model analyzes incomplete factor mobility as a problem of investment theory in a dynamic context. Convex costs of adjustment generate finite investment...

This paper explores the potential of firms to restrict industry outputs (market power) in oligopolistically organized markets where domestic firms compete with foreign ones. Within a stochastic price-setting supergame framework, market power is shown to be lower in general with flexible exchange...

In einem Allgemeinen Gleichgewichtsmodell werden die Auswirkungen internationaler Arbeitskräftewanderungen auf die Einkommensverteilung im Zu- und Abwanderungsland untersucht. Das bekannte Ergebnis, daß eine marginale Migration bei konstanten Güterpreisen die Wohlfahrt der Nichtmigranten...

The paper incorporates the efficiency-wage theory into an otherwise standard trade model. The model accounts for sector-specific job rents and involuntary unemployment while preserving decisive properties of the competitive fullemployment approach. The key results from the literature can be...

This paper analyzes adjustment to exogenous shocks in a dynamic version of the specific-factors model in which capital is assumed to be a quasi-fixed factor. Capital allocation is treated as an issue in investment theory, thus endogeniz-ing long-run capital stocks of industries. Convex costs of...

This paper studies income-redistribution effects from labor migration in a small open economy under alternative assumptions on the international mobility of capital. Our principal result is that induced international capital flows dampen or may even reverse redistribution effects. However, as...

Das vorliegende Papier untersucht die Möglichkeiten durch ein politisch fixiertes Lohnniveau die Übersiedlerwelle von der DDR in die BRD einzudämmen. Unterstellt man Einkommensdifferenzen als Motiv für die Abwanderung, so besteht - unter für die DDR realistischen Bedingungen bezüglich...

This paper generalizes the analysis in Albert (1989) and Meckl (1990) of adjustment in a dynamic specific-factors model with endogenous capital stocks. Capital reallocation and accumulation are consequences of investment decisions and depreciation. The Investment process is analyzed under a...

In this paper I develop a theoretical model explaining optimal wage-tenure profiles for heterogeneous labor. My findings entail that high productive people have steeper profiles than low productive individuals. I find strong empirical evidence for these findings. At the end of my paper, I...

The paper integrates human-capital investments of heterogeneous individuals into a neoclassical growth framework. The accumulation of physical capital changes relative factor prices and thus incentives to acquire skills, thereby altering the composition of the labor force. This interplay between...