The received wisdom is that cheaper foreign inputs may replace tasks previously done by domestic labor, and cause displacement of workers at the home country. However, using the U.S. multinational enterprises data, the empirical evidence in this paper does not support the idea that the imported...

In most of the macroeconomic models, the concept of representative agent is adopted. The aggregate economy is a simple combination of a large amount of these identical agents. Individuals are thought to have no power in influencing the performance of aggregate economy, especially the prices in...