The theory on organization of offshore production is most often viewed through the lens of a source country. Moreover, internalization literature in a vertical production transfer context is divorced from its welfare consequences. That is, the decision to “make or buy” offshore input is...

This paper uncovers a counter-intuitive effect of international trade on female labor shares: whenever trade expands, sectors intensive in female labor, female labor shares drop and vice versa. According to our key assumption a rising capital labor ratio closes the gender wage gap. The paper’s...

I consider directed technical change in an economy where market structure is endogenous. Endogeneity of market structure leads to both theoretical and empirical implications that are substantially different from those in the existing literature and that in some cases are rather surprising. There...

I broadly summarize the theoretical and recent empirical literatures on human development. Using Gray and Purser’s 1970-2010 database of human development index (HDI) components (income, life expectancy, literacy, gross enrolment ratios) for 135 countries, together with indicators of the...

The growth literature on the Industrial Revolution has produced novel insights that have changed the way economists think about the issue. Most of the available models, however, focus on the household and do not put industrial activity at the center of the analysis. Consequently, they leave out...

We derive the aggregate normalized CES production function from idea-based microfoundations where firms are allowed to choose their capital- and labor-augmenting technology optimally from a menu of available technologies. This menu is in turn augmented through factor-specific R&D. The considered...

The World Bank documents an inverse relationship between GDP per-capita and child labor participation rates. We construct a life-cycle model with human and physical capital in which parents make a time allocation choice for their child. The model considers two features that have shown potential...

Donor aid is often regarded as being informally tied (aid increases donor-recipient exports) and this effect is in general interpreted as being harmful to aid recipients. However, in this paper, using a gravity model, we show that aid is positively associated with recipient-donor exports as...

This study examines optimal public policy in a product cycle model where R&D firms innovate and imitate and households face non-diversifiable risk. The government controls product cycles by two policy instruments: patent length, i.e. the expected time an innovation is imitated, and patent width,...