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Strategic Trade, Competitive Industries and Agricultural Trade Disputes

Bagwell, Kyle - 2000

The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the theory is augmented to allow for...

Persistent link: https://www.econbiz.de/10012470921

Is Everything Neutral?

Bernheim, B. Douglas - 1986

In his well-known analysis of the national debt, Robert Barro introduced the notion of a "dynastic family." This notion has since become a standard research tool, particularly in the areas of public finance and macroeconomics. In this paper, we critique the assumptions upon which the dynastic...

Persistent link: https://www.econbiz.de/10012476983

A Short Note on Aggregating Productivity

Baqaee, David - 2019

This paper discusses two simple decompositions for aggregate productivity analysis in the presence of distortions and in general equilibrium. The first is a generalization of Baqaee and Farhi (2017) and the second is due to Petrin and Levinsohn (2012). In the process, we propose a new...

Persistent link: https://www.econbiz.de/10012479640

The Darwinian Returns to Scale

Baqaee, David - 2020

How does an increase in the size of the market due to fertility, immigration, or trade integration, affect welfare and real GDP? We study this question using a model with heterogeneous firms, fixed costs, and monopolistic competition. We decompose the change in welfare into changes in technical...

Persistent link: https://www.econbiz.de/10012481722

Entry vs. Rents

Baqaee, David - 2020

A tension between entry and rents lies at the core of a general theory of aggregation with scale effects. This paper … characterizes the responses of macro aggregates to micro shocks in disaggregated economies with general forms of entry, internal or … productivity into changes in technical and allocative efficiency, and show that the latter depend on changes in rents and entry …

Persistent link: https://www.econbiz.de/10012481723

Supply and Demand in Disaggregated Keynesian Economies with an Application to the Covid-19 Crisis

Baqaee, David - 2020

We study supply and demand shocks in a general disaggregated model with multiple sectors, multiple factors, input-output linkages, downward nominal wage rigidities, credit-constraints, and a zero lower bound. We use the model to understand how the Covid-19 crisis, an omnibus of supply and demand...

Persistent link: https://www.econbiz.de/10012481735

Bubbly Liquidity

Farhi, Emmanuel - 2011

This paper analyzes the possibility and the consequences of rational bubbles in a dy- namic economy where financially constrained firms demand and supply liquidity. Bub- bles are more likely to emerge, the scarcer the supply of outside liquidity and the more limited the pledgeability of...

Persistent link: https://www.econbiz.de/10012461908

Insurance and Taxation over the Life Cycle

Farhi, Emmanuel - 2011

We consider a dynamic Mirrlees economy in a life cycle context and study the op- timal insurance arrangement. Individual productivity evolves as a Markov process and is private information. We use a first order approach in discrete and continuous time and obtain novel theoretical and numerical...

Persistent link: https://www.econbiz.de/10012461909

Delocation and Trade Agreements in Imperfectly Competitive Markets

Bagwell, Kyle - 2009

We consider the purpose and design of trade agreements in imperfectly competitive environments featuring firm-delocation effects. In both the segmented-market Cournot and the integrated-market monopolistic competition settings where these effects have been identified, we show that the only...

Persistent link: https://www.econbiz.de/10012463205

Collective Moral Hazard, Maturity Mismatch and Systemic Bailouts

Farhi, Emmanuel - 2009

The paper elicits a mechanism by which private leverage choices exhibit strategic complementarities through the reaction of monetary policy. When everyone engages in maturity transformation, authorities have little choice but facilitating refinancing. In turn, refusing to adopt a risky balance...

Persistent link: https://www.econbiz.de/10012463512