-sector small open economy, an effect which has largely been neglected in trade theory literature. We show that ignoring the … bias that appears to matter for empirical studies of trade. -- Deardorff diagram ; technology shock ; factor endowments …

Recent empirical evidence suggests that a positive technology shock leads to a decline in labor inputs. However, the … employment to a technology shock. The results of the estimation support the hypothesis that labor market frictions are …

the neutral technology shock is the main driving force in the volatility slowdown, allowing for a larger financial …