We investigate the interplay between firms' R&D decisions and labor market competition, and how this influences equilibrium location choices and welfare. Firms engage in risky R&D activities and thus create stochastic product and implied labor demand. Spatial agglomeration is more likely in...

Die Bewertung internationaler Produktionsstandorte wirdfürUnternehmenimmer wichtiger. Standortentscheidungen werden aber oftvorrangig unter Kostengesichtspunkten getroffen. Die Quoten der enttäuschten Rückverlagerer zeigen, dass das Risiko des Scheiterns dabei hoch ist. Neben...

In a two-country reciprocal dumping model, with one country unionized, we analyze how wage setting and firm location are influenced by trade liberalization. We show that trade liberalization can induce FDI, which is at odds with conventional theoretical wisdom and cannot happen in a...