Typically, a small and open economy trades goods at given worl prices. Here, we present a model of a very open small economy, where capital and labor are internationally mobile, too. When targeting mobile capital ("FDI"), the economy's government attracts not only mobile capital but mobile...

This paper tests a smart money-noise trader model directly by seeing how well its predictions match the behavior of actual investors.

Computable general equilibrium (CGE)models require both theory and data. The theory underlying our model is standard general equilibrium theory, and details will be provided elsewhere. The sole purpose of this paper is to present in detail the data used to calibrate this model. We have...

This paper argues that trade unions have a number of distinct and possibly conflicting effects on wages. This contrasts with the vast bulk of the literature which focuses on estimating a simgl measure of the union differential or "mark-up". We use data at the work-place level for the United...

This paper presents an analysis of the growth and structure of EU-CEE intra-industry trade since the latter commenced their economic transition in the late 1980's. Section 2 outlines the economic rationale for intra-industry trade and its classification into horizontal and vertical two-way...

The purpose of this paper is to examine the relationship between three variables- the grant rate, the tax rate and the relative price of local costs and to establish the trade offs between these variables.

In Irish manufacturing, the foreign sector accounts for about one half of employment and some 60 per cent of gross output. The Irish experience therefore provides us with a textbook case study of the effects on an EU host economy of export-oriented FDI. We explore in this paper the structural...

This paper models the relationship between the union and its membership as a Principal Agent problem. The union sets wages subject to a labour demand curve. The level of wages is determined by union effort. The union negotiates as a monopoly union. Its utility is a risk averse function of its...

This paper considers the problem of comparing real incomes across countries. The available methods are reviewed and their performance is compared using the raw data underlying the Penn World Table.

This has demonstrated the rationale for allowing for winners and losers contingent valuation. In addition, it has shown how appropriate measures of welfare gains as well as loses can be elicited in dichotomous choice contingent valuation.