A 2-country model with two groups of agents, workers and capitalists is presented in which economic integration results in an initial phase of catch-up, where the less industrialised country experiences the rise in both capital and labour income. Then, after a certain level of integration has...

A country or firm's position in the value chain will largely depend on its comparative advantage, and therefore the mix of skills and resource endowments it brings to international production. For some, this might initially involve specialising in the labour intensive segments while others may...

This volume was prepared by Inga Heiland while she was working at the Ifo Institute. It was completed in July 2016 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It comprises five chapters addressing one or more aspects of international trade and...

This volume was prepared by Inga Heiland while she was working at the ifo Institute. It was completed in July 2016 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It comprises five chapters addressing one or more aspects of international trade and...

A 2-country model with two groups of agents, workers and capitalists is presented in which economic integration results in an initial phase of catch-up, where the less industrialised country experiences the rise in both capital and labour income. Then, after a certain level of integration has...

We offer a new explanation for why taxes have become less redistributive in many countries in parallel with an increase in income concentration. When performance-based contracts are needed to incentivize effort, redistribution through progressive income taxes becomes less precisely targeted....

We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...