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...

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...

We analyze the employment effects of immigration within a model that accounts for several stylized facts of the German labor market. The co-existence of positive wage spans and unemployment is explained by wage rigidities that are simultaneously caused by effciency-wage setting and minimum...

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...

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...

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...