Factor price equalisation in the Dixit-Norman approach occurs when the international trade equilibrium reproduces allocations and output of the integrated world economy (IWE), in which the trading countries would form one economy with perfectly mobile goods and factors. Based on this concept,...

Feenstra and Hanson [NBER Working Paper No. 6052 (1997)] propose a procedure to correct the standard errors in a two-stage regression with generated dependent variables. Their method has subsequently been used in two-stage mandated wage models [Feenstra and Hanson, Quarterly Journal of Economics...

We analyse the immigration flows to Western Europe in the sixties. We develop a theoretical model tailored to account for some of the key features of this period, i.e., trade in manufacturing that essentially involved advanced countries, the growing administration of labour markets in Western...