We examine the dynamic macroeconomic effects of public infrastructure investment both theoretically and empirically, using a novel data set we compiled on various highway spending measures. Relying on the institutional design of federal grant distributions among states, we construct a measure of...

We develop a two-country labor search model in which a multinational firm engages in production sharing by hiring both domestic and foreign labor to produce a final good. A key innovation to the model is the sequential nature of labor markets which allows the ability of the multinational to...