Estimating labor supply functions using a discrete rather than a continuous specification has become increasingly popular in recent years. On basis of the German Socioeconomic Panel (GSOEP) I test which specification of discrete choice is the appropriate model for estimating labor supply: the standard conditional logit model or the random coefficient model. To the extent that effect heterogeneity is ...
The deterioration of the income and employment position of unskilled workers in the OECD since the 1980s is a well-documented fact. The debate about the causes of this development is dominated by two competing hypotheses, "North-South Trade" ("globalisation") and technological progress. Several empirical methodologies have been used to identify and quantify the importance of these two explanations: ...
This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar framework, but under Bertrand competition.
This paper presents a simple Chamberlinian agglomeration model which, like the canonical core-periphery (CP) model, contains two agglomerative forces. However, in contrast to that model, the present model is analytically solvable. Moreover, the present model exhibits a 'supercritical pitchfork bifurcation' rather than the 'subcritical pitchfork bifurcation' of the CP model. This may be a better description ...
Policy makers in "small" countries facing trade liberalisation have become concerned with the potential loss of manufacturing employment and output to "large" economies in the presence of economies of scale in production and international transport costs. This paper offers a methodology to estimate the "home market" effect for numerous industries, after accounting for transport costs and traditional ...
Applying a method suggested by Woodruff (1971), we derive the sampling variances of Generalized Entropy and Atkinson inequality indices when estimated from complex survey data. It turns out that this method also greatly simplifies the calculations for the i.i.d. case when compared to previous derivations in the literature. Both cases are illustrated with examples from the German Socio-Economic Panel ...
