Intersectoral adjustment and unemployment in a two-country Ricardian model

SERIE RE5ERRCH mEmORnnDR PRICE ADJUSTMENT IN A TWO-COUNTRY MODEL

On the welfare effect of international technology transfer in a two-country Ricardian model

The purpose of this paper is to sketch out what are the consequences of free technology transfer, licensing and foreign direct investment (F.D.I) on the North-South welfare in a two-good, two-country Ricardian model. On the demand side and following the recent reappearance of the homotheticity restriction on consumers preferences, we use a Cobb-Douglas utility function. We show how that the dev...

Unemployment, Inflation and Income Distribution: A Cross- country Analysis

This is the first study to attempt to explain income inequality using unemployment and inflation and international cross-sectional data. Using a SURE system, inflation is found to have an increasing impact on the shares of the lower 80% of the income distribution, while reducing the share of the highest 20%. Unemployment has a negative effect on the share of the first 40%, while increases the s...

Globalization, Trade Adjustment and Gradualism: An Exploratory Note in a Ricardian model with Overlapping Generations

Henry Wan, Jr. and Yinggang Zhou Cornell University May 2005 Abstract A general equilibrium model is set up for the entire trading world with overlapping generations, where the initial sector-specific age distribution of labor makes the impact of trade liberalization beneficial for some and detrimental to others, while allocation efficiency is improved. Und...

Fixed Costs of Capital Adjustment in a Two Country Real Business Cycle Model

The present paper analyzes the role of non-convex adjustment costs to capital in a stylized two country model of real business cycles. In contrast to the closed economy case, we find fixed adjustment costs to have a significant influence on investment decisions for each of the countries just as for the aggregated world economy. Like convex costs, fixed adjustment costs substantially limit capit...