In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality both within and between countries. We emphasize the distinction between managerial and production labor. Production labor is assumed to be a variable input composed of tradable...

In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume complete contracts. Firms are heterogeneous as in Melitz...

In this paper we theoretically derive an international Rybczynski matrix. Its elements indicate the aggregate output change in a country when endowment with one or more factors in the same or another country is increased. This allows us to characterize theproduction structure in 11 countries of...

This paper is a dynamic extension of the well-known theory of trade in tasks by Grossman & Rossi-Hansberg (2008). In my model, a firm's offshoring decision is governed by production cost savings, but also considers potential imitation risk. I show that such a consideration reduces the level of...

The European Union and Japan have recently launched negotiations about a bilateral free trade agreement as means of economic stimulation, with trade as a driving force to create growth and wealth. Since customs duties are already low, the success of the liberalization process hinges on the...

We look at managerial and production wages in countries that differ in size and relative endowments. Production labor is assumed to be a variable input composed of tradable tasks, while managerial labor is a fixed, non-tradable input. Task performance is subject to increasing returns to scale on...

This paper is a dynamic extension of the well-known theory of trade in tasks. In my model, a firm's offshoring decision is governed by production cost savings, but also considers potential imitation risk. I show that such a consideration reduces the level of offshoring compared to a static...

Inspired by the theory of variety-expanding product innovation we derive a testable relationship of outsourcing on the growth rate of knowledge. We estimate this relationship with a firm-level dataset, which is a unique match of PATSTAT patent data and theAmadeus dataset. We find evidence that...

Exploiting the information contained in an economy's input-output matrix and using the novel approach developed by Fisher and Marshall (2011), we calculate Rybczynski effects and Stolper-Samuelson effects for Germany in 2007. We show how sectoral outputand factor remuneration react to exogenous...

Neben internationalen Exporten stellen grenzüberschreitende Investitionen du rch multinationale Unternehmungen (MNU) die zweite Säule der globalen ökonomischen Integration dar. Während Exporte in den letzten 40 Jahren vor der letzten Finanzmarktkrise durchschnittlich einen jährlichen...