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A Theory of Outsourcing and Wage Decline

By Thomas J. Holmes and Julia Thornton Snider

American Economic Journal: Microeconomics, May 2011

This paper develops a theory of outsourcing in which the circumstances under which factors of production can grab rents play the leading role. One factor has monopoly power (call this labor) while a second factor does not (call this capital). There are t...

Dynamic Revenue Estimation

By Alan J. Auerbach

Journal of Economic Perspectives, Winter 1996

This paper considers the question of adopting 'dynamic' revenue estimation methods, which would incorporate the predicted macroeconomic effects of policies. It describes the current revenue estimation process and how these estimates are used in the format...