Minimum Wage in a General Equilibrium Model of International Trade and Human Capital

1986 ◽  
Vol 27 (1) ◽  
pp. 149 ◽  
Author(s):  
Karnit Flug ◽  
Oded Galor
Keyword(s):  
Human Capital ◽  
International Trade ◽  
General Equilibrium ◽  
Minimum Wage ◽  
Equilibrium Model ◽  
General Equilibrium Model

scholarly journals The Minimum Wage Puzzle in Less Developed Countries

2020 ◽  
Vol 20 (23) ◽  
Author(s):  
Christopher Adam ◽  
Edward Buffie
Keyword(s):  
General Equilibrium ◽  
Minimum Wage ◽  
Equilibrium Model ◽  
Capital Accumulation ◽  
Full Range ◽  
Developed Countries ◽  
Efficiency Wages ◽  
General Equilibrium Model ◽  
Less Developed Countries ◽  
Dynamic General Equilibrium Model

We show that a dynamic general equilibrium model with efficiency wages and endogenous capital accumulation in both the formal and (non-agricultural) informal sectors can explain the full range of confounding stylized facts associated with minimum wage laws in less developed countries.

scholarly journals The Boundaries of Multinational Enterprises and the Theory of International Trade

1995 ◽  
Vol 9 (2) ◽  
pp. 169-189 ◽  
Author(s):  
James R Markusen
Keyword(s):  
International Trade ◽  
General Equilibrium ◽  
Empirical Evidence ◽  
Equilibrium Model ◽  
Multinational Enterprises ◽  
Multinational Firms ◽  
Final Section ◽  
General Equilibrium Model ◽  
Knowledge Capital ◽  
Multinational Production

This paper begins with a review of empirical evidence on multinational firms. Conceptual underpinnings of a theory are developed, relying in particular on the notion of knowledge capital as a mobile, joint input into geographically separated production facilities. This idea is embedded in a simple two-country general equilibrium model that supports multinational production in equilibrium under conditions consistent with the empirical evidence. The final section examines internalization and shows why certain properties of knowledge capital also imply a preference for transferring technologies internally within the firm, rather than through arm's-length markets.

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