Matching and Inequality in the World Economy
This paper develops tools and techniques to study the impact of exogenous changes in factor supply and factor demand on 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.
We thank Daron Acemoglu, David Autor, Ariel Burstein, Pierre-André Chiappori, Gene Grossman, Gordon Hanson, seminars participants at many institutions, and especially Esteban Rossi-Hansberg for helpful comments and discussions. We have also benefited from stimulating discussions by Pol Antras, Bob Staiger, and Dan Trefler at the NBER Summer Institute and the Princeton IES Summer Workshop. Costinot also thanks Princeton IES for its hospitality. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Arnaud Costinot & Jonathan Vogel, 2010. "Matching and Inequality in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 118(4), pages 747-786, 08. citation courtesy of