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This paper reviews the scientific contributions of Paul Krugman to the study of international trade, on the occasion of his receipt of the 2008 Nobel Memorial Prize in Economics. A simplified exposition is presented of some of his principal findings, including: the effects of trade on firm scale...
Persistent link: https://www.econbiz.de/10005656373
We develop a multi-country Dixit-Stiglitz model to investigate the impacts of: (i) changes in the international distribution of consumers' expenditure; (ii) decreasing tariffs; and (iii) improvements in transportation infrastructure. We show that, in general, decreasing tariff barriers do not...
Persistent link: https://www.econbiz.de/10005123913
We introduce a framework that has known models of oligopolistic competition with differentiated products (the circle and the constant elasticity of substitution (CES)) as limit cases. This integrative approach incorporates both localized and global competition, as well as price-sensitive...
Persistent link: https://www.econbiz.de/10005504717
Armchair evidence shows that many industries are made of a few big commercial or manufacturing firms, which are able to affect the market outcome, and of a myriad of small family-run businesses with very few employees, each of which has a negligible impact on the market. Examples can be found in...
Persistent link: https://www.econbiz.de/10005048555
In modern economies, the amount of profits distributed to shareholders is far from being negligible. We show that the way profits are distributed among agents matters for the space-economy. For example, the existence of mobile rentiers is sufficient to make the symmetric configuration unstable...
Persistent link: https://www.econbiz.de/10005666838
We develop a theory of imperfect competition with loss-averse consumers. All consumers are fully informed about match value and price at the time they make their purchasing decision. However, a share of consumers are initially uncertain about their tastes and form a reference point consisting of...
Persistent link: https://www.econbiz.de/10008468627
A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple NEG model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that re-locating to the big region is most attractive for the most productivity...
Persistent link: https://www.econbiz.de/10005498028
the models that relax assumptions about the nature of demand, competition, and trade costs. A model that links varieties …
Persistent link: https://www.econbiz.de/10005667026
predictions: the role of market access in determining factor prices, the related home market effect in which demand has a more …
Persistent link: https://www.econbiz.de/10005791744
The home market effect is considered as a distinguishing feature of models of trade with increasing returns to scale in production and imperfect competition. However, some empirical studies found the existence of home market effect even in constant returns to scale industries. In this paper we...
Persistent link: https://www.econbiz.de/10005792275