Egger, Hartmut; Habermeyer, Simone - In: Review of World Economics 158 (2021) 3, pp. 815-853
We set up a trade model with two countries, two sectors, and one production factor, which features a home-market effect due to the existence of trade costs. We consider search frictions and firm-level wage bargaining in the sector producing differentiated goods and a perfectly competitive labor...
