Showing 1 - 10 of 12,860
This paper investigates the relationship between entry, demand, and dumping in the context of a two country Ricardian … model of international trade. Dumping - the export of goods at a price below average cost - can arise in the free trade … dumped good in equilibrium. Interestingly, and in contrast to models of dumping in cyclical downturns, dumping will not occur …
Persistent link: https://www.econbiz.de/10012475183
Persistent link: https://www.econbiz.de/10015055683
Persistent link: https://www.econbiz.de/10003564029
We propose a stylized monopolistic competition model of international trade where firms differ with respect to the expected economic lifetime of their innovations. Upon entry, they receive a commonly observed signal which is updated over time. Jointly with partial irreversibility of investment,...
Persistent link: https://www.econbiz.de/10009571208
Persistent link: https://www.econbiz.de/10009522867
In this paper we show that price equalization alone is not sufficient to determine the barriers to international trade. There are many barrier combinations that deliver price equalization, but each combination implies a different volume of trade. We demonstrate this first theoretically in a...
Persistent link: https://www.econbiz.de/10009700288
I modify a standard model of the home market to introduce entry barriers that create local rents. The existence of rents has relevant implications. First, the home market effect magnifies. Second, when countries are sufficiently unequal in size and rents are sufficiently large, a trade costs...
Persistent link: https://www.econbiz.de/10011535917
In a free-entry Cournot oligopoly model with a quadratic utility function that yields differentiated products, it is shown that there are losses from trade when the trade cost is close to the prohibitive level. Although the total number of varieties increases, there is a reduction in consumer...
Persistent link: https://www.econbiz.de/10011471748
This paper analyses the effects of tariff reforms on welfare and market access in a competitive small open economy that is characterised by involuntary unemployment due to non-market clearing wages that are fixed either in terms of the numeraire or in real terms. We show that recent...
Persistent link: https://www.econbiz.de/10012729155
A two-sector, two-period trade model is developed in which one sector has increasing returns based on the creation of specialized intermediate inputs. One of the two (otherwise identical) countries is not able to enter the increasing returns sector in the first period through some "accident of...
Persistent link: https://www.econbiz.de/10013222249