This paper develops a model of the circumstances under which it is beneficial to participate in a currency area. The proposed two-country monetary model of trade with nominal rigidities encompasses the real and monetary arguments suggested by the optimum currency area literature: correlation of...

This volume was prepared by Sebastian Benz while he was working at the Ifo Institute. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes five self-contained chapters. All chapters discuss different...

In the wake of the Melitz (2003) model of heterogeneous firms in international trade, new theoretical models arose that try to assess the impact of trade on wage inequality within sectors, a feature that neoclassical trade theory cannot sufficiently explain. Based on the predictions of Helpman,...

Introduction / Richard Pomfret -- Part I: Flying geese and NIEs -- A theory of unbalanced growth in the world economy / Kaname Akamatsu -- The "flying geese" model of Asian economic development : origin, theoretical extensions, and regional policy implications / Kiyoshi Kojima -- Economic...