This paper discusses the evolution of the supply chain and welfare under economic integration in a three-region framework (one developed and two developing regions), with each region at a different stage of development. Economic integration is measured by the reduction of inter-regional trade...

This paper investigates the impact of language on economic performance. I use the 1956 reorganization of Indian states on linguistic lines as a natural experiment to estimate the impact of speaking the majority language on educational and occupational outcomes. I find that districts that spoke...

A firm's productivity depends on how production is organized given the level of demand for its product. To capture this mechanism, we develop a theory of an economy where firms with heterogeneous demands use labor and knowledge to produce. Entrepreneurs decide the number of layers of management...

This article emphasises that a key to understanding the (net) benefits of the Internet is to remember that all online activity has an offline context. People live their lives offline. Therefore, the fall in communication costs and the fall in distribution costs associated with the diffusion of...

For an economy where knowledge plays an increasingly important role in shaping its dynamics, economics needs a dynamic (Schumpeterian) welfare theory. This paper sketches the role of knowledge in an economy and argues that a static Paretian welfare economics is inadequate, or at least needs to...

This paper takes a new look at the issue of overseas sourcing of services. In framework in which comparative advantage is endogenous to agglomeration economies and factor mobility, the fragmentation of production made possible by the new communication technologies and low transportation costs...

Communication is a real barrier to organizing international production as it hinders knowledge transmission. This paper provides evidence to suggest that a way in which multinational firms economize on costly information transfers is by using skilled foreign workers, since local talent can...

Our purpose is to investigate how the interplay between trade, commuting and communication costs shapes the economy at both the interregional and intraurban levels.

The purpose of this paper is to investigate how the interplay between production, commuting and commuting and costs shapes the economy at intra-urban level. Specifically, we study how economic integration affects the internal stricture of cities and how decentralizing of production and...

This paper explores the consequences of grouping workers into diverse divisions on the performance of employees using a dataset containing the detailed personnel records of a large U.S. firm from 1989-1994. In particular, I examine the effects of demographic dissimilarity among co-workers,...