In the debate on globalisation and wage inequality HeckscherOhlin theory has featured prominently. However, a neglected mechanism by which globalisation affects labour market outcomes is through the increased tradability of producer services. By integrating elements of Heckscher-Ohlin theory, the economic geography literature and the literature on producer services linkages, we show that the im...

In this paper, it is argued that physically abundant labor is not necessarily cheap labor. The latter depends upon the cost of food staples. Given the non-tradability of the latter, rapid growth without rapid agricultural productivity growth will make labor increasingly costly. This will make the transition to labor intensive manufacturing and the exportation of such products very difficult. Mo...

A balance sheet structure including fixed assets, net working capital and risky long-term debt leads to a model for option pricing of the firm’s equity. Each of the financial components constitutes a source of risk. A hedge based on three distinct options and the stock enables risk neutral valuation and avoids the problems of lack of tradability of the assets and market incompleteness reflected...

This paper analyses the income and structural effects of the Single Payment Scheme (SPS). In particular, we analyze how the income distributional effects and farm restructuring are impacted by the SPS by accounting for entitlement tradability, cross-compliance and CAP 'greening' requirements, different SPS implementation models, and the entitlement stock. Our results suggest that the SPS implic...

This paper analyses the distributional effects of decoupled Single Farm Payments (SFP) in the European Union. In a static world the SFP benefit only farmers, irrespective of the implemented SFP model and irrespective of whether entitlements are tradable or not, except when the size of the allocated entitlements is larger than the eligible area and/or if entrants are eligible for the SFP. Then t...