2010년 10월 7일 목요일

Inequality and Unemployment in a Global Economy

Inequality and Unemployment in a Global Economy

Elhanan Helpman
Oleg Itskhoki
Stephen Redding


Econometrica 2010


This paper develops a new framework for examining the determinants of wage distributions that emphasizes within-industry reallocation, labor market frictions, and differences in workforce composition across firms. More productive firms pay higher wages and exporting increases the wage paid by a firm with a given productivity. The opening of trade enhances wage inequality and can either raise or reduce unemployment. While wage inequality is higher in a trade equilibrium than in autarky, gradual trade liberalization first increases and later decreases inequality.

Copyright 2010 The Econometric Society.
Download Info

Ambiguity and Second-Order Belief

Ambiguity and Second-Order Belief

Kyoungwon Seo

Econometrica 2009

Anscombe and Aumann (1963) wrote a classic characterization of subjective expected utility theory. This paper employs the same domain for preference and a closely related (but weaker) set of axioms to characterize preferences that use second-order beliefs (beliefs over probability measures). Such preferences are of interest because they accommodate Ellsberg-type behavior.

Copyright 2009 The Econometric Society.