This paper proposes a multi-industry trade model with integrated capital markets and Mortensen and Pissarides search frictions in the labor market. Institutional changes in the model trigger adjustments at the intensive and extensive margin of labor demand. At the extensive margin a shift of the...

This paper proposes a multi-industry trade model with integrated capital and goods markets. Labor market imperfections in line with Mortensen and Pissarides (1994) give rise to unemployment and a channel for the government to influence markets through institutional changes. Labor market...

This paper proposes a simple multi-industry trade model with search frictions in the labor market. Unimpeded access to global financial markets enables capital owners to invest abroad, thereby fostering unemployment at the extensive industry margin. Whether a country benefits from FDI in terms...

This paper proposes a multi-industry trade model with integrated capital and goods markets. Labor market imperfections in line with Mortensen and Pissarides (Job Creation and Job Destruction in the Theory of Unemployment, 1994) give rise to unemployment and a channel for the government to...

This paper studies the impact of a recent tax rebate by the German government. In attempt to reduce the economic burden of soaring gas prices, Germany reduced the energy tax on fuel by roughly 30 cents for a limited period of time. Based upon a diff-in-diff approach, we find a pass-through on...

In the beginning of the COVID-19 pandemic, governments had to rely on Non-Pharmaceutical Interventions in their struggle against the spread of the virus. The stringency of the lockdowns differed across space and time as governments had to adjust their strategy dynamically to the country-specific...

This paper presents an empirical analysis of plant level responses to the China trade shock based upon a DSGE framework with heterogeneous firms and productivity shocks. The empirical analysis shows that soaring imports from China are associated with a higher probability of plant closure. By...