Welfare in models of trade with heterogeneous firms

Arbeitspapier

I illustrate that the welfare improvement property of the Melitz model is due to the shape of the aggregate labor demand curve, which slopes upwards. By slightly changing some assumptions in the model, this curve may have a negative slope. In this case, increases in aggregate productivity result in a reduction in welfare. For example, this may occur when fixed costs are measured in units of aggregate output instead of labor.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 3803

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Thema: Heterogenous firms ; international trade ; aggregate labor demand curve ; welfare ; Neue Außenhandelstheorie ; Außenhandelsliberalisierung ; Wohlfahrtseffekt ; Arbeitsnachfrage ; Aggregation ; Allokation ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Janiak, Alexandre
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/35737
• URN: urn:nbn:de:101:1-20081126786
• Letzte Aktualisierung: 17.03.2025, 09:46 MEZ