This paper develops a series of simple heterogeneous-agents economies in order to study the welfare implications of labor market inequality. We perform two types of welfare calculations. First we compute the welfare cost of a rise in labor market risk, given a particular asset market structure (complete markets, incomplete markets, autarky). Second, we compute the expected gain from completing ...

This paper presents a simple model where microfounded dynamics of cultural identity are endogenous and interact with an international trade equilibrium. This process generates a strong home bias under autarky. We then show that goods market integration causes a phenomenon of cultural divergence, whereby the distributions of cultures become more dissimilar across countries and one of the culture...

What are the macroeconomic effects of tax adjustments in response to large public debt shocks in highly integrated economies? The answer from standard closed-economy models is deceptive, because they underestimate the elasticity of capital tax revenues and ignore crosscountry spillovers of tax changes. Instead, we examine this issue using a two-country model that matches the observed elasticity...

This paper applies the infra-marginal analysis, which is a combination of marginal and total cost-benefit analysis, to a model with both constant returns and increasing returns in production and with exogenous and endogenous comparative advantages. It demonstrates that as transaction conditions are improved, the general equilibrium discontinuously jumps from autarky to partial division of labor...

The importance of international trade for the welfare of actors in the forest sector was estimated by comparing the current state of the world with a world in pure autarky with zero imports and exports of roundwood and manufactured wood products. The analysis was done with a comparative statics application of the Global Forest Products Model. The model was first calibrated to replicate observat...

Responding to concerns about burden-sharing and aiming improve internal defence cooperation, act more quickly harness resource synergies, the European Union (EU) initiated Permanent Structured Cooperation (PESCO) in 2017. PESCO, however, is controversial. On one hand, United States (US) wants greater by allies whilst concerned military autarky that would undermine US influence over NATO, Europe...

Autarkies arise in studies of satisfiability of CNF theories. In this paper we extend the notion of an autarky to arbitrary propositional theories. We note that in this general setting autarkies are related to the 3-valued logic. Most of our results are concerned with algorithmic properties of autarkies. We prove that the problem of the existence of autarkies is NP-complete and that, as in the ...

We analyze the trend of regional integration (or local protection) in current China through exploring its effect on local growth rate. Given specified assumptions on the endogenous growth model refined from Chinese characteristics, we show that any form of economic integration always makes both regions better off. Even with completely local protection for commodities flow but having technology ...

We consider the question of the existence of variables with few occurrences in boolean conjunctive normal forms (clause-sets). Let μvd(F ) for a clause-set F denote the minimal variable-degree, the minimum of the number of occurrences of variables. Our main result is an upper bound μvd(F ) ≤ nM(σ(F )) ≤ σ(F ) + 1 + log 2 (σ(F )) for lean clause-sets F in dependency on the surplus σ(F ). Lean cl...