We show that relaxing the assumption of CES preferences in monopolistic competition has surprising implications when trade is restricted. Integrated and segmented markets behave differently, the latter typically exhibiting reciprocal dumping. Globalization and lower trade costs have different effects: the former reduces spending on all existing varieties, the latter switches spending from home ...

We specify and estimate a life-cycle labour supply model that expands on earlier work by simultaneously including human capital accumulation, saving and bequests, an active extensive margin, a realistic specification of the progressive tax structure and the Social Security system, and an accounting for private pensions and health expenditures. By incorporating all these features, we develop new...

The authors "present estimates of the elasticity of demand for labor [in the United States] by region for the manufacturing sector....A brief theoretical framework for analyzing the demand for labor is presented.... This framework is used to develop a model that is well suited to analyze interregional differences in the elasticity of demand for labor....[It is] shown that there are significant ...

In 1996, free choice of health insurers was introduced to the German social health insurance system. One objective was to increase efficiency through competition. A crucial precondition for effective competition among health insurers is that consumers search for lower-priced health insurers. We test this hypothesis by estimating the price elasticities of insurers' market shares. We use unique p...

In this paper, we analyze family labor supply in urban China using discretized neo-classical labor supply model, where we take into account the unobserved heterogeneity of each spouse and their correlation, unobservability and measurement errors of the wage rates, and the correlation of the wage and preferences. The correlation of preference between spouses is also taken into account. Elasticit...

The sensitivity of asset fixity conclusions, input adjustment rates, and elasticities to choice of functional form is examined using a dynamic dual model of U.S. agriculture. A very general initial specification allows tests of instantaneous adjustment to be performed for every input. Test results are mixed across functional forms for all inputs except real estate, which is consistently found t...

One of the most important criteria for measuring degree development in a country is women's importance and prestige. To achieve social development, accelerate process economic attain justice, women must be regarded as an active constructive force, which will have great impact on process, thereby increasing quality quantity human resources within community. The role largely depends goals fundame...

Elasticities of demand and supply for South African manufactured exports are estimated using a vector error correction model in order to address simultaneity and non-stationarity issues. Demand is highly price-elastic, with elasticities ranging from –3 to –6. The price elasticity of supply is generally about 1, but some estimates are as low as 0.35. Competitors’ prices and world income are impo...

In this paper, we use data from a survey of taxi drivers in Singapore to test two competing labor supply hypotheses: the standard intertemporal model and the income targeting model, where workers set an earnings target over some short time horizon. The former predicts positive wage elasticities of labor supply, while an extreme form of the latter implies an elasticity of-1. The estimated wage e...

Firm-Level Monopsony and the Gender Pay Gap Using a dynamic labor supply model and linked employer-employee data, I find evidence of substantial search frictions, with females facing a higher level of frictions than males. However, the majority of the gender gap in labor supply elasticities is driven by across firm sorting rather than within firm differences, a feature predicted in the search t...