In this paper we develop a model of a multi-sector multi-factor small open economy with involuntary unemployment due to fair wages. The model is used inter alia to analyse the labour market effects of changes in unemployment benefits and the domestic labour supply. Our analysis covers both the case where factor prices do not react to endowment changes – as in the Heckscher-Ohlin model – and the...

This paper develops a new model with heterogeneous firms under perfect competition in Heckscher-Ohlin setting. We derive novel prediction regarding the effect of minimum wages on selection, namely that binding wage will raise (or lower) TFP at firm and industry level depending whether capital intensity entry costs exceeds (falls short of) production. Exploiting rich regional variation across Ch...

Motivated by increasing trade and fragmentation of production across countries, accompanied income convergence many emerging economies, we build a dynamic two-country model featuring sequential, multi-stage capital accumulation. As costs decline over time, global-value-chain (GVC) expands particularly more in the faster-growing country, consistent with empirical pattern. Via Heckscher–Ohlin for...

En un contexto internacional como el actual, en que las pulsiones proteccionistas vuelven a campar sus anchas, resulta conveniente realizar una mirada retrospectiva hacia aquellas teorías económicas propugnan mayor liberalización comercial modelo de crecimiento económico. Desde los economistas clásicos y antecesores (Adam Smith David Ricardo, entre otros); hasta modelos planteados siglo XX (Hec...

This paper uses three years of individual-level data to analyze the determinants of individual preferences over trade and immigration policies in the United States. Different economic models make contrasting predictions about what forces should shape these preferences. We have four main empirical results. First, we find that factor type dominates industry of employment in explaining support for...

The rising inequality of income distribution has attracted world’s attention since Krugman [2007] criticized the rising inequality in the U.S. especially after the 1980s. This phenomenon became well known worldwide when “Occupy Wall Street” movement broke out in 2011, and has been discussed in Stiglitz [2012] and Piketty [2013]. It must be noted, first, that their analysis is econometric or pol...

In this paper we try to explain how well trading models in general can be used for international arms trading. We will study the evolution of main throughout history order see what ways they may adequate security and defence material trading, mainly focus Heckscher-Ohlin model. understand military equipment are going analyze industry’s composition, studying cases exporters importers, motivates ...