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on German Papers |
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Issue of 2009‒11‒27
three papers chosen by Roberto Cruccolini Ludwig-Maximilians-Universitat Munchen |
| By: | Werner Eichhorst (IZA); Paul Marx (IZA); Eric Thode (Bertelsmann Stiftung) |
| Abstract: | Bericht auf Basis eines Projekts im Auftrag der Bertelsmann Stiftung, Bonn 2009 (48 Seiten) |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izarrs:22&r=ger |
| By: | Heike Joebges (Macroeconomic Policy Institute (IMK) at Hans Boeckler Foundation, Duesseldorf); Andreas Schmalzbauer (Macroeconomic Policy Institute (IMK) at Hans Boeckler Foundation, Duesseldorf); Rudolf Zwiener (Macroeconomic Policy Institute (IMK) at Hans Boeckler Foundation, Duesseldorf) |
| Abstract: | Low nominal - and at times even decreasing real - wage growth has characterized the German labour market in the past. Because of globalization, this process seemed inevitable. However, looking at employment effects of external trade, several "dogmas" of the predominant view in Germany ought to be challenged: First, there is no indication whatsoever for Germany to become a so called "bazaar" economy (where a growing share of intermediate goods imports is responsible for favourable export developments, while in reality domestic production erodes). Second, wage moderation is the wrong answer to globalization, as it hampers economic growth and employment, furthers diverging developments in the euro area, and aggravates Germany's dependence on (uncontrollable) world markets. These results are based on input-output-analysis and econometric simulations. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:imk:studie:04-2009&r=ger |
| By: | Patricia Hofmann (Universität Hohenheim) |
| Abstract: | Standard international trade lectures normally comprises three central theories: the Ricardian Model, the Heckscher-Ohlin-Samuelson Modell and New Trade Theory `a la Krugman 1979 and 1980. Nowadays this trilogy needs to be enhanced with the basic concepts of a new class of trade models: the New New Trade Theory which accounts for firm heterogeneity and market entry costs. The basic objective of this paper is to present the contribution of Marc J. Melitz in Econometrica 2003 which is central to this new class of trade theory. I show how it is embedded in antecedent theory and highlight the new insights for trade patterns stemming from it. |
| Keywords: | Trade Theory, Heterogenous Firms, Monopolistic Competition, Entry, Exit, Firm Size, Export Decision |
| JEL: | F10 F12 L11 L13 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:y:2009:i:30:p:1-78&r=ger |