The paper shows how - using as an example the trade flows between eleven European countries and 31 OECD 'reporting' countries - the result of a gravity model, in terms of potential trade, changes substantially when country heterogeneity and dynamics are taken into account. Comparing the...

In many countries, including the U.S. and the U.K., there is ongoing concern about the extent to which young people from lower-income backgrounds can acquire a university degree. Recent evidence from the U.K. suggests that for a given level of prior achievement in secondary school a...

Because of linkages between markets for new and used durable goods, economic policies that target new durable good markets, such as tax incentives or antitrust legislation, are likely to affect used goods markets as well. I use a simple theoretical model to illustrate how an exogenous shock to...

The ‘green industry’ is often noted in discussions of the costs and benefits of environmental policy, and it has been characterized as a unique industry with substantial potential for employment growth, well-paying ‘green jobs,’ and export opportunities. In this paper, we examine the...

This paper explores the relationship between environmental subsidies, the diffusion of a clean technology, and the degree of product differentiation in an imperfectly competitive market. Like others, we show that the subsidy succeeds in reducing environmental damage only when the substitution...

In a general equilibrium framework, it is known that imitation may actually promote innovation (Aghion et al., 1997). The same effect is demonstrated with a standard oligopoly model in which one firm has the ability to develop technologies while all other firms imitate and obtain a fraction of...

This paper provides a theoretical model of a team sports league and studies the welfare effect of salary caps. It shows that salary caps will increase competitive balance and decrease overall salary payments within the league. The resulting effect on social welfare is counter-intuitive and...

This paper uses a multinomial probit model to analyze individuals' choice of banks based on the types of banking services they use, their own characteristics, and their own perceptions about important factors in banking. Previous studies on this topic, which are limited in number, concentrate on...

Using British data from the 2004 Workplace Employment Relations Survey, the author examines whether and how the relationship between schedule flexibility and wages differs by gender. Using a basic measure of whether the worker has discretion over the start and end times of work, men have more...