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We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...
Persistent link: https://www.econbiz.de/10012466954
We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country...
Persistent link: https://www.econbiz.de/10014049472
Persistent link: https://www.econbiz.de/10008660400
Persistent link: https://www.econbiz.de/10003942341
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of the shock to the eurozone which is our main trade partner. …
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anticipation of a future cost-push shock leads to a higher welfare loss than an unanticipated shock. A welfare gain from the … anticipation of a future cost shock may only occur if prices are sufficiently flexible. We analytically show that this surprising …
Persistent link: https://www.econbiz.de/10003794092