Trade and Unemployment: What Do the Data Say?

This paper documents a robust empirical regularity: in the long-run, higher trade openness is causally associated to a lower structural rate of unemployment. We establish this fact using: (i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries. The time structure of the panel data allows us to deal with endogeneity concerns, whereas cross-sectional data make it possible to instrument openness by its geographical component. In both setups, we carefully purge the data from business cycle effects, include a host of institutional and geographical variables, and control for within-country trade. Our main finding is robust to various definitions of unemployment rates and openness measures. The preferred specification suggests that a 10 percent increase in total trade openness reduces unemployment by about one percentage point. Moreover, we show that openness affects unemployment mainly through its effect on TFP and that labor market institutions do not appear to condition the effect of openness.international trade, real openness, unemployment, GMM models, IV estimation

Globalization and Labor Market Outcomes: Wage Bargaining, Search Frictions, and Firm Heterogeneity

We introduce search unemployment à la Pissarides into Melitz’ (2003) model of trade with heterogeneous firms. We allow wages to be individually or collectively bargained and analytically solve for the equilibrium. We find that the selection effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and raises real wages as long as it improves aggregate productivity net of transport costs. We show that this condition is likely to be met by a reduction in variable trade costs or the entry of new trading countries. On the other hand, the gains from a reduction in fixed market access costs are more elusive. Calibrating the model shows that the positive impact of trade openness on employment is significant when wages are bargained at the individual level but much smaller when wages are bargained at the collective level.trade liberalization, unemployment, search model, firm heterogeneity

Multiconfigurational Short-Range Density-Functional Theory for Open-Shell Systems

Many chemical systems cannot be described by quantum chemistry methods based on a singlereference wave function. Accurate predictions of energetic and spectroscopic properties require a delicate balance between describing the most important configurations (static correlation) and obtaining dynamical correlation efficiently. The former is most naturally done through a multiconfigurational (MC) wave function, whereas the latter can be done by, e.g., perturbation theory. We have employed a different strategy, namely, a hybrid between multiconfigurational wave functions and density-functional theory (DFT) based on range separation. The method is denoted by MC short-range (sr) DFT and is more efficient than perturbative approaches as it capitalizes on the efficient treatment of the (short-range) dynamical correlation by DFT approximations. In turn, the method also improves DFT with standard approximations through the ability of multiconfigurational wave functions to recover large parts of the static correlation. Until now, our implementation was restricted to closed-shell systems, and to lift this restriction, we present here the generalization of MC-srDFT to open-shell cases. The additional terms required to treat open-shell systems are derived and implemented in the DALTON program. This new method for open-shell systems is illustrated on dioxygen and [Fe(H2O)6]3+.Comment: 37 pages, 3 figures, 4 tables, 1 appendix and 79 references Changes in v2: 1) Appendix B and reference 81 removed 2) Removed dublicated reference and corrected reference 31. 3) Added spin-charge cross terms to GGA (Appendix A). Code changed accordingly and GGA results recalculated. All GGA results are revised -only small modifications observed. Conclusions are unchange

Trade and Unemployment: What do the data say?

This paper documents a robust empirical regularity: in the long-run, higher trade openness is causally associated to a lower structural rate of unemployment. We es- tablish this fact using: (i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries. The time structure of the panel data allows to deal with endogeneity concerns, whereas cross-sectional data make it possible to instru- ment openness by its geographical component. In both setups, we carefully purge the data from business cycle effects, include a host of institutional and geographical variables, and control for within-country trade. Our main finding is robust to various definitions of unemployment rates and openness measures. The preferred specification suggests that a 10 percent increase in total trade openness reduces unemployment by about one percentage point. Moreover, we show that openness affects unemployment mainly through its effect on TFP and that labor market institutions do not appear to condition the effect of openness.international trade, real openness, unemployment, GMM models, IV esti- mation.

Reversible Destruction of Dynamical Localization

Dynamical localization is a localization phenomenon taking place, for example, in the quantum periodically-driven kicked rotor. It is due to subtle quantum destructive interferences and is thus of intrinsic quantum origin. It has been shown that deviation from strict periodicity in the driving rapidly destroys dynamical localization. We report experimental results showing that this destruction is partially reversible when the deterministic perturbation that destroyed it is slowly reversed. We also provide an explanation for the partial character of the reversibility.Comment: 4 pages, 2 eps figures (color

Quantum scaling laws in the onset of dynamical delocalization

We study the destruction of dynamical localization, experimentally observed in an atomic realization of the kicked rotor, by a deterministic Hamiltonian perturbation, with a temporal periodicity incommensurate with the principal driving. We show that the destruction is gradual, with well defined scaling laws for the various classical and quantum parameters, in sharp contrast with predictions based on the analogy with Anderson localization.Comment: 3 pages, revtex

Trade and unemployment : what do the data say?

This paper documents a robust empirical regularity: in the long-run, higher trade openness is causally associated to a lower structural rate of unemployment. We establish this fact using: (i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries. The time structure of the panel data allows to deal with endogeneity concerns, whereas cross-sectional data make it possible to instrument openness by its geographical component. In both setups, we carefully purge the data from business cycle effects, include a host of institutional and geographical variables, and control for within-country trade. Our main finding is robust to various definitions of unemployment rates and openness measures. The preferred specification suggests that a 10 percent increase in total trade openness reduces unemployment by about one percentage point. Moreover, we show that openness affects unemployment mainly through its effect on TFP and that labor market institutions do not appear to condition the effect of openness

Globalization and labor market outcomes: wage bargaining, search frictions, and firm heterogeneity

We introduce search unemployment à la Pissarides into Melitz' (2003) model of trade with heterogeneous firms. We allow wages to be individually or collectively bargained and analytically solve for the equilibrium. We find that the selection effect of trade influences labor market outcomes. Trade liberalization lowers unemployment and raises real wages as long as it improves aggregate productivity net of transport costs. We show that this condition is likely to be met by a reduction in variable trade costs or the entry of new trading countries. On the other hand, the gains from a reduction in fixed market access costs are more elusive. Calibrating the model shows that the positive impact of trade openness on employment is significant when wages are bargained at the individual level but much smaller when wages are bargained at the collective level

Meta-modelling hybrid formalisms

Proceedigns of 2004 IEEE International Symposium on Computer Aided Control Systems DesignPersonal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works. S. Lacoste-Julien, H. Vangheluwe J. de Lara, and P. J. Mosterman, "Meta-modelling hybrid formalisms", 2004 IEEE International Symposium on Computer Aided Control Systems Design, Taipei, China, 2004, pp. 65-70This article demonstrates how meta-modelling can simplify the construction of domain-and formalism-specific modelling environments. Using AToM3 (a tool for multi-formalism and meta-modelling developed at McGill University), a model is constructed of a hybrid formalism, HS, that combines event scheduling constructs with ordinary differential equations. From this specification, an HS-specific visual modelling environment is synthesized. For the purpose of this demonstration, a simple hybrid model of a bouncing ball is modelled in this environment. It is envisioned that the future of modelling and simulation in general, and more specifically in hybrid dynamic systems design lies in domain-specific computer automated multi-paradigm modelling (CAMPaM) which combines multi-abstraction, multi-formalism, and meta-modelling. The small example presented in this article demonstrates the feasibility of this approac