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Research |
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Working Papers “Matching
and Inequality in the World Economy” (With Arnaud Costinot) This
paper develops a tractable general equilibrium model with a continuum of workers
and sectors. In this environment, changes in relative factor supply or demand
affect matching between workers and sectors. Changes in matching, in turn,
affect workers' relative productivities and wages. Because of
complementarities in production, this simple mechanism leads to sharp
predictions about the full distribution of earnings for a wide range of
comparative statics exercises, including North-South and North-North trade
integration, skill-biased technological change, and offshoring. “Spatial Price Discrimination with Heterogeneous
Firms” This paper presents and solves a two-stage
game of endogenous location and pricing in a spatial price discrimination
framework with arbitrarily many heterogeneous firms. In any SPNE in undominated strategies more productive firms are more
isolated, all else equal. Moreover, a firm's market share and profit are
uniquely determined across all SPNE in undominated
strategies. In addition to replicating previous results in a new framework,
the paper improves upon previous spatial competition work in two important
dimensions. First, the results hold not only in a neighborhood of symmetry,
but also for an arbitrary distribution of marginal costs. Second, this paper
obtains a unique characterization of SPNE in undominated
strategies without imposing any assumptions on the allocation of
transportation costs. |
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Published and Forthcoming Papers Journal of
International Economics, Volume 71 (April 2007) “Spatial Competition with Heterogeneous Firms” Accepted:
Journal of Political Economy |
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