Found 20 article(s) for author 'Elhanan Helpman'

Identity Politics and Trade Policy

Identity Politics and Trade Policy. Elhanan Helpman, October 2, 2018, Paper, “We characterize trade policies that result from political competition when assessments of wellbeing include both material and psychosocial components. The material component reflects, as usual, satisfaction from consumption. Borrowing from social identity theory, we take the psychosocial component as combining the pride and self-esteem an individual draws from the status of groups with which she identities and a dissonance cost she bears from identifying with those that are different from herself.Link

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Globalization and Inequality

Globalization and Inequality. Elhanan Helpman, 2018, Book, “Globalization is not the primary cause of rising inequality. This may come as a surprise. Inequality within nations has risen steadily in recent decades, at a time when countries around the world have eased restrictions on the movement of goods, capital, and labor. Many assume a causal relationship, which has motivated opposition to policies that promote freer trade. Elhanan Helpman shows, however, in this timely study that this assumption about the effects of globalization is more myth than fact.Link

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The Productivity Slowdown and Labour’s Income Share

The Productivity Slowdown and Labour’s Income Share. Elhanan Helpman, November 11, 2017, Paper, “Many countries have experienced both a slowdown in aggregate productivity growth and a decline in labour’s share of national income in recent years. This column argues that the productivity slowdown may have caused the decline in labour’s income. Calibrating the authors’ model to US data suggests that a one percentage point decline in the productivity growth rate accounts for between half and all of the observed decline in the US labour share.Link

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The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration

The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration. Elhanan Helpman, October 2017, Paper, “We explore the possibility that a global productivity slowdown is responsible for the widespread decline in the labor share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing the balanced growth path to U.S. data for the early post-war period and find that a one percentage point slowdown in the growth rate of per capita income can account for between one half and all of the observed decline in the US labor share.Link

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The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration

The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration. Elhanan Helpman, September 2017, Paper, “We explore the possibility that a global productivity slowdown is responsible for the widespread decline in the labor share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing the balanced growth path to U.S. data for the early postwar period and find that a one percentage point slowdown in the growth rate of per capita income can account for between one half and all of the observed decline in the U.S. labor share.Link

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Globalization and Wage Inequality

Globalization and Wage Inequality. Elhanan Helpman, December 9, 2016, Paper, “Globalization has been blamed for rising inequality in rich and poor countries. Yet the views of many protagonists in this debate are not based on evidence. To help form an evidence-based opinion, I review in this paper the theoretical and empirical literature on the relationship between globalization and wage inequality. While the initial analysis that started in the early 1990s focused on a particular mechanism that links trade to wages, subsequent studies have considered several other channels, and the quantitative assessment of the size of these influences has been carried out in multiple studies. Building on this research, I conclude that trade played an appreciable role in increasing wage inequality, but that its cumulative effect has been modest, and that globalization does not explain the preponderance of the rise in wage inequality within countries.Link

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Balanced Growth Despite Uzawa

Balanced Growth Despite Uzawa. Elhanan Helpman, 2016, Paper. “The evidence for the United States points to balanced growth despite falling investment-good prices and an elasticity of substitution between capital and labor less than one. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa’s theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle. However, balanced growth is possible if schooling is endogenous and capital is more complementary with schooling than with raw labor. We describe balanced growth paths for a variety of neoclassical growth models with capital-augmenting technological progress and endogenous schooling. The balanced growth path in an overlapping-generations model in which individuals choose the duration of their education matches key features of the U.S. economic record.Link

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Schooling and Balanced Growth

Schooling and Balanced Growth. Elhanan Helpman, February 28, 2016, Paper. “For the past few decades, the growth of industrialised economies has been remarkably balanced. This column suggests that such balanced growth results from schooling levels increasing over time. When capital and schooling are sufficiently complementary, increases in schooling offset the effect of capital deepening on the capital share and ensure that growth remains balanced.Link

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Balanced Growth Despite Uzawa

Balanced Growth Despite Uzawa. Elhanan Helpman, 2016, Paper. “Evidence for the United States suggests balanced growth despite falling investment-good prices and less than unitary elasticity of substitution between capital and labor. This is inconsistent with the Uzawa Growth Theorem. We extend Uzawa’s theorem to show that introducing human capital accumulation in the standard way does not resolve the puzzle. However, balanced growth is possible if education is endogenous and capital is more complementary with schooling than with raw labor. We describe balanced growth paths for several neoclassical growth models with capital-augmenting technological progress and endogenous schooling. The balanced growth path in an overlapping-generations model in which individuals choose their time in school matches key features of the U.S. record.Link

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Online Supplement for Trade and Inequality: From Theory to Estimation

Online Supplement for Trade and Inequality: From Theory to Estimation. Elhanan Helpman, October 28, 2015, Paper. “This online supplement contains the technical derivations for the theoretical results in the paper and reports additional empirical results and other information. Section B discusses reduced-form empirical findings for other countries that are consistent with our stylized facts for Brazil in Section 3 of the paper. Section C provides a full characterization of the structural model and discusses the relationship between the reduced-form coecients and structural parameters. Section D deals with econometric inference, including the derivation of the likelihood function and the generalized method of moments (GMM) bounds analysis. Section G discusses the data sources and denitions. Section H contains additional empirical results and robustness checks referred to in the paper.Link

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