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We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
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In this paper we study the employment effects of changes in the levels and patterns of outsourcing in the Austrian … components. Outsourcing is modelled as changes in the shares of domestically produced intermediates. For this some further … indirect effects of changes in the levels and structures of outsourcing.Second, the framework takes account of all 60 sectors …
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U.S. manufacturing experienced a precipitous and historically unprecedented decline in employment in the 2000s. Many economists and other analysts - pointing to decades of statistics showing that manufacturing real (inflation-adjusted) output growth has largely kept pace with private sector real...
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chapter compares the impact of international trade in intermediate inputs (offshoring) on wage inequality in two distinct but … similar frameworks. In the first framework the profitability of offshoring is based on increasing returns to scale on the task …-level, whereas the second framework relies on differences in relative factor endowments of the two countries involved in offshoring …
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