This paper proposes a theory of free movement of goods and labor between two large economies with imperfect labor contracts. Each country is incompletely specialized in producing two final goods that differ in their complexity of production. The most complex good is produced by workers and...

This paper develops a political-economic analysis of immigration in a developed country that operates in a direct democracy regime. It shows that, in a monopolistic competitive environment with differentiated capital intensive commodities produced under increasing returns to scale, labor...