We first use the Scottish debate to show a non-Ricardian way of approaching the problem of inter-national economic relations distinguishing between the effects of an once-and-for-all opening of previously closed markets and a long-term process of interaction including technical change, relative...

To assess the employment effects of labor costs it is crucial to have reliable estimates of the labor cost elasticity of labor demand. Using a matched firm-worker dataset, we estimate a long run unconditional labor demand function, exploiting information on workers to correct for endogeneity in...