This paper introduces finance or credit in the Dixit-Stiglitz-Krugman (DSK) model of international trade. It identifies mechanisms by which finance can affect the main results of the conventional model. The key results are as follows. Perfect credit market does not affect number of varieties or...

Using 136 United States macroeconomic indicators from 1973 to 2017, and a factor augmented vector autoregression (FAVAR) framework with sign restrictions, we investigate the effects of three structural macroeconomic shocks - monetary, demand, and supply - on the labour market outcomes of black...

This paper is based on the ideas of political philosopher John Rawls who suggested that a just society is one which would be created behind a "veil of ignorance", that is to say, without knowing where one would end up in the society's distribution of talent and other attributes valued in the...

The paper provides an overview on recent trends of immigration in OECD countries and on the possible effects of immigration on labour markets and government budgets. It also discusses migration policies from an economic point of view. By bringing together a bulk of international literature on...

We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after...

This paper revisits an important analysis of enterprise zones (EZs) by Ham, Swenson, Imrohoroğlu, and Song (2011), who report substantial poverty reductions from state and federal EZs, as well as improvements in other labor market outcomes. In our re-analysis, we find that a data error accounts...

U3, the official unemployment rate, is an inadequate gauge of labor-market slack and the extent to which it misinforms varies substantially over the business cycle. The U6 unemployment rate is usually about 4 percentage points above U3. However, during the Great Recession it exceeded U3 by 7...