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Matching and Inequality in the World Economy

by: Arnaud Costinot, Jonathan Vogel
Journal of Political Economy, Vol. 118, No. 4. (1 August 2010), pp. 747-786, doi:10.1086/655858  Key: citeulike:8046209

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Abstract

This paper develops tools and techniques to analyze the determinants of factor allocation and factor prices in economies with a large number of goods and factors. The main results of our paper characterize sufficient conditions for robust monotone comparative statics predictions in a Roy-like assignment model. These general results are then used to generate new insights about the consequences of globalization.


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