This paper investigates when trade could cause the selection effect. Since the increased average real wage induced by trade triggers the selection effect in Melitz (2003), the main issue is the labor market conditions under which trade raises the average real wage. To identify the labor market conditions for the selection effect, this paper employs worker heterogeneity with respect to abilities...

Small State Regional Cooperation, South-South and South-North Migration, and International Trade This paper provides a different basis than previous analyses for regional bloc formation and regional migration. Due to low bargaining power and fixed costs, small states face a severe disadvantage in negotiations with the rest of the world and might benefit by forming a regional bloc. The study a) ...

We study the effects of trade integration for the conduct of monetary policy in a two-country model with heterogeneous firms, endogenous producer entry, and labor market frictions. The model reproduces important empirical regularities related to international trade, namely synchronization of business cycles across trading partners and reallocation of market shares across producers. Three key re...

Interregional labor mobility improves the allocation of labor and provides a means of insurance against income risks (Wildasin, 1995). This paper studies labor mobility in a simple version of the speci...c factors model where domestic factors are geographically immobile. I take the perspective of a region which faces an uncertain and less than in...nitely elastic export demand schedule but is a...

This paper proposes a multi-industry trade model with integrated capital and goods markets. Labor market imperfections in line with Mortensen and Pissarides (Job Creation and Job Destruction in the Theory of Unemployment, 1994) give rise to unemployment and a channel for the government to influence markets through institutional changes. Labor market interventions feedback into the product marke...

This paper presents a robust approach for an automatic speech recognition system (ASR) when both additive and convolutional noises corrupt the speech signal. Robust features are derived by assuming that the corrupting noise is stationary and the channel effect is fixed during the utterance. In the proposed method the effect of additive and convolutional distortions are minimized by two stage fi...

The H∞ control design problem is considered for nonlinear systems with unknown internal system model. It is known that the nonlinear H∞ control problem can be transformed into solving the so-called Hamilton-Jacobi-Isaacs (HJI) equation, which is a nonlinear partial differential equation that is generally impossible to be solved analytically. Even worse, model-based approaches cannot be used for...

This paper examines the impact of access to international agro-manufacture markets on poverty in Argentina. Measures of international market access, such as cuts in tariffs and abolition of non-tariff measures, can be approximated by changes in the price of key exportable goods. Estimates from the related literature suggest that expanded market access would cause the international price of Arge...

This paper investigates both aggregate and distributional impacts of the trade integration of China, India, and Central and Eastern Europe in a quantitative multi-country multi-sector model, comparing outcomes with and without factor market frictions. Under perfect withincountry factor mobility, the gains to the rest of the world from trade integration of emerging giants are 0.37%, ranging from...

Trade and Labor Reallocation with Heterogeneous Enforcement of Labor Regulations This paper revisits the question of how trade openness affects labor market outcomes in a developing country setting. We explore the fact that plants face varying degrees of exposure to global markets and to the enforcement of labor market regulations, and rely on Brazil’s currency crisis in 1999 as an exogenous so...