We develop a theory of outsourcing in which there is market power in one factor market (labor) and no market power in a … show there is always outsourcing in the market allocation when a friction limiting outsourcing is not too big. The key … equilibria that vary in the degree of outsourcing. Across these equilibria, wages are lower the greater the degree of outsourcing …

We develop a theory of outsourcing in which there is market power in one factor market (labor) and no market power in a … show there is always outsourcing in the market allocation when a friction limiting outsourcing is not too big. The key … equilibria that vary in the degree of outsourcing. Across these equilibria, wages are lower the greater the degree of outsourcing …

We develop a theory of outsourcing in which there is market power in one factor market (labor) and no market power in a … show there is always outsourcing in the market allocation when a friction limiting outsourcing is not too big. The key … equilibria that vary in the degree of outsourcing. Across these equilibria, wages are lower the greater the degree of outsourcing …

shares are equal to the elasticity of output with respect to factors have had important implications for economic theory …. However, there are various theoretical reasons why the elasticity of output with respect to reproducible factors should be … to the elasticity of output with respect to factors then the labor income share must be negatively correlated with the …

I estimate the elasticity of GDP with respect to aggregate capital and labor using industry-specific cost structures … upper and lower bounds for the elasticities. In the U.S. from 1948-1995 the capital elasticity bounds were 0.18-0.33, and … capital elasticity bounds. Elasticities are similar in other OECD countries from 2005-2015. Based on these boundaries for the …