This paper studies the effects of pension reform in a two-country model with country-specific goods. It shows that in the case of dynamic efficiency, a switch from a pay-as-you-go (PAYG) to a more-funded pension scheme leads to an inflow of labour to the reforming country. Reallocation of...

This paper introduces finance or credit in the Dixit-Stiglitz-Krugman (DSK) model of international trade. It identifies mechanisms by which finance can affect the main results of the conventional model. The key results are as follows. Perfect credit market does not affect number of varieties or...

This paper addresses the relation between goods trade and international factor mobility in general terms. Conditions for factor price equalization are derived for situations with tradein both goods and factors,as well as Rybczynski and Stolper-Sarnuel Sofl theorems. A weak price versionof the...

This paper aims to capture key features of the Ricardo-Viner (RV) and Heckscher-Ohlin (HO) theories in a single dynamic general equilibrium framework. We use a simple 2-sector 2-factor model with adjustment costs associated with the movement of capital across sectors. We analyze the economy's...

Migration, Unemployment and Trade focuses on the issues of migration, welfare and unemployment in a trade and development framework. Several chapters of the book analyze the implications of internal labor mobility in a model designed to highlight its implications for regional welfare, urban...