In contrast to standard trade theory, I document that locations facing more foreign competition in the U.S. have: higher job destruction rates, lower job creation rates, and thereby experience higher unemployment rates. To account for these facts, I introduce a simple trade model with...

Starting in the late 1990s, China undertook a dramatic transformation of the large number of firms under state control. Most small state owned firms were privatized or closed. In contrast, large state owned firms were corporatized and and merged into large industrial groups under the control of...

I study risk sharing arrangements in settings characterized with Knightian uncertainty. In general both the demand for insurance and risk perceptions are endogenous and interact in these settings. This paper attempts to identify the key mechanisms affecting insurance in stylized environments...

We explore the role of skill non-neutral productivity differences and barriers to technology adoption in explaining cross-country income differences. Using a model of directed technological change modied to include physical capital, technology diffusion and barriers to entry, and a new data set...