Tabuchi, Takatoshi; Behrens, Kristian; Lamorgese, Andrea R. - Econometric Society - 2004
We extend the two-country model by Krugman (1980) to a multi-country set-up and show that the `home-market effect' highlighted with two countries does not readily extend to such a more general setting. In particular, we prove that the most important result, namely the disproportionate causation...