We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good, and labor. Product and labor markets have matching frictions. A general equilibrium is a set of prices, market tightnesses, and quantities such that buyers and sellers optimize given prices and tightnesses, and actual tightnesses equal posted tightnesses. In each frictional marke...

From 1980 to 2000, the substantial rise in the U.S. college-high school graduate wage gap coincided with an increase in geographic sorting as college graduates increasingly concentrated in high wage, high rent metropolitan areas, relative to lower skill workers. The increase in wage inequality may not reflect a similar increase in well-being inequality because high and low skill workers increas...

This paper investigates the impact of immigration on market prices and how natives respond by examining how inflows of immigrant students and immigrant labor affect the postsecondary enrollment of natives. Existing studies have focused on the effect of increased immigrant demand for schooling on native enrollment, omitting the effect that changes in immigrant labor supply also have on prices re...

We subject claims about the benefits of activity-based costing systems to the scrutiny of analytical models incorporating rational behavior by users of product costing systems. We find that a monopolist Is almost always strictly better off using multiple cost drivers as in an activity-based costing (ABC) system even when the system makes measurement errors in assigning overhead costs to activit...

We study the extent to which responses in urban redevelopment density to demand shocks contribute to population growth, taking into account urban land expansions independent of demand shocks and changes in housing absorption by existing urban households. In the context of Chinese urban growth from 1998 to 2004 when liberalization in urban housing and labor markets significantly elevated labor m...

The GEM-E3 model starts from the same basic structure as the standard World Bank models2. Following the tradition of these models, GEM-E3 is built on the basis of a Social Accounting Matrix (Decaluwe, Martens and Monette 1987; Decaluwe and Martens 1988) and explicitly formulates demand and supply equilibrium. Technical coefficients in production and demand are flexible in the sense that produce...

Unemployment inflows fell from 4 percent of employment per month in the early 1980s to 2 percent or less by the mid 1990s and thereafter. U.S. data also show a secular decline in firm-level employment volatility and the job destruction rate. We interpret this decline as a decrease in the intensity of idiosyncratic labor demand shocks, a key parameter in search and matching models of frictional ...

How do multinational firms affect both the demand for and supply of skills in hostcountry labor markets? On the demand side, inward can FDI stimulate demand for moreskilled workers in host countries through several channels. Most empirical evidence is that these channels work mainly within multinationals themselves, rather than through knowledge spillovers to domestic firms. On the supply side,...