Globalization and Market Structure

Presidential Address Globalization and Market Structure

This paper reviews some puzzling economic aspects of globalization and argues that they cannot be satisfactorily addressed in perfectly or monopolistically competitive models. Drawing on recent work, a model of oligopoly in general equilibrium is sketched. The model ensures theoretical consistency by assuming that firms are large in their own markets but small in the economy as a whole, and ens...

Stock Market Valuation and Globalization

We study the valuation of similar assets in different national markets and how the valuation differentials have evolved through time. We focus on the impact of globalization and propose a (model free) measure of the degree of segmentation of world equity markets. We characterize which factors determine its cross-sectional and time series variation. Our first goal is to link the measure to the d...

Globalization and the Labor Market

I thank Allan Mendelowitz and Matt Slaughter for helpful comments. All opinions and errors are mine. 1 In this paper I survey the effects of international trade and other influences on the US labor market. First, I examine the move toward globalization and its various manifestations. Second, I trace out the main labor market changes that have occurred over the last two or three decades – declin...

Market Structure and Price Adjustment in the Iranian Tea Market

Globalization, Inequality and Labor Market Policies

This paper addresses four questions. First, is globalization associated with more inequality in consumption or earnings? Second, is the labor market an important transmission mechanism? Third, can labor market policies reduce inequality? And fourth, would these policies have important side effects on efficiency? The answers are based on an analytical survey of the literature, including several ...