We show that the impact of globalization on growth and wages crucially depends on the labor market structures of the countries involved. We contrast bargaining and perfect competition. Under perfect capital markets, convergence of capital and income per capita always occurs despite di®erent labor market structures. However, di®erent labor market structures prevent convergence of the income shar...

A new market based approach for transmission expansion planning in deregulated environments is presented in this paper. In this approach, transmission-planning decisions are made based on the electric power market conditions. The main contribution of this research is 1) Introducing a new probabilistic tool for analyzing the electric market conditions, 2) Defining new criteria for ranking transm...

In this paper I study the link between innovation efforts, competition, and aggregate uncertainty. A productive sector consists in a continuum of duopolies that face a stochastic aggregate demand. In each industry the two firms choose their level of innovation through intertemporal optimization given their respective market power in the business. Since competition in the model lessens ex ante p...

D uring the 1930s, the work of Robinson and Chamber!in resulted in a revitalization of economic theory. While classical and neoclassical theory provided a useful framework for economic analysis, the theories of perfect competition and pure monopoly had become inadequate as explanations of the contemporary business scene. The theory of perfect competition assumes homogeneity among the components...