Modern trade models attribute the dispersion of international prices to physical and man-made barriers to trade, to the pricing-to-market by heterogeneous producers and to differences in the quality of output offered by firms. This paper presents a general equilibrium model that incorporates all...

How important is the exercise of classical monopsony power against labor for the level of wages and labor's share? We examine this in the context of China and India - two large, rapidly-growing developing economies. Using theory, we develop a novel screen to quantify how wages are affected by...

In this paper we study whether or not transportation infrastructure disrupts local monopsony power in labor markets using an expansion of the national highway system in India. Using panel data on manufacturing firms, we find that monopsony power in labor markets is reduced among firms near newly...

International transactions are costly because they require investments in logistics, contracts, and the acquisition of local institutional knowledge. We posit that a portion of the fixed costs of entering a specific export market can be used toward costs of acquiring imports from that same...