We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ...

Recent theoretical literature studies how labor market reforms in one country can affect labor market outcomes in other countries, thereby...

The quantitative trade literature often does not distinguish between tariffs and iceberg trade costs. This paper explores qualitatively and...

When the world economy was recently hit by a severe recession, governments all over the world reacted by initiating stimulus packages. Some...

When the world economy was recently hit by a severe recession, governments all over the world reacted by initiating stimulus packages. Some...

Analyses of the effects of trade policies focus on comparisons of two different steady states, restricting the investigation to the long run....

Why are empirically observed tariffs so much lower than theoretically calculated Nash-equilibrium tariffs? We argue that this gap can be...

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ...

Recent theoretical literature studies how labor market reforms in one country can affect labor market outcomes in other countries, thereby...

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable workers. In...

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable workers. In...

Recently, the world economy has seen its greatest down turn since World War II. Although not as bad as during the Great Depression, there was...

The paper sets up a two-country asymmetric trade model with heterogeneous firms, search frictions and endogenous labor market institutions....

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous...

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous...

Should governments only purchase domestic goods to increase welfare? And would government spending be higher were it only used for domestic...

By concentrating the stimulus on the domestic economy, Buy National clauses are argued to lead to higher fiscal multipliers. We show that this...

We build on the latest developments in the structural gravity literature to quantify the partial and general equilibrium effects of GATT/WTO...

Critics of the proposed Transatlantic Trade and Investment Partnership (TTIP) dismiss its potential welfare gains as small compared with its...