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The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to them. This study shows that both predictions may no longer hold once adjustments in the retail sector are taken into account. I present a new model of retailing in general...
Persistent link: https://www.econbiz.de/10013316385
We introduce financial frictions in a two sector model of international trade with heterogeneous agents. The level of specialization in the economy (economic development) depends on the quality of financial institutions. Underdeveloped financial markets prohibit an economy to specialize in...
Persistent link: https://www.econbiz.de/10013093905
We develop a general-equilibrium model to capture key features of the retailing and of the manufacturing industry in order to understand how these two industries interact and how labor is allocated between them. We show that the observed shift in employment from manufacturing to retailing, the...
Persistent link: https://www.econbiz.de/10013122636
retailer, and slotting allowances can facilitate such incentives by increasing unit wholesale prices. At first glance, it is …
Persistent link: https://www.econbiz.de/10012770258
Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy are based on theoretical models that assume foreign manufacturers sell directly to consumers. However, recent empirical evidence suggests that wholesalers and retailers play an...
Persistent link: https://www.econbiz.de/10013054501
Slotting allowances are fees paid by manufacturers to get access to retailers' shelf space. Both in the USA and Europe, the use of slotting allowances has attracted attention in the general press as well as among policy makers and economists. One school of thought claims that slotting allowances...
Persistent link: https://www.econbiz.de/10013317427
-quality product and limits the wholesale price a brand manufacturer can charge. If, however, the branded product is not available … the salient attribute and allows the manufacturer to charge a higher wholesale price. We also show that, the weaker are …
Persistent link: https://www.econbiz.de/10012947991
into retail prices and the effects of retail market regulation. The paper shows that the degree of pass-through may be …
Persistent link: https://www.econbiz.de/10013095573
A body of literature suggests that ethnic heterogeneity limits economic growth. This paper provides microeconometric … evidence on the direct effect of ethnic divisions on productivity. In team production at a plant in Kenya, an upstream worker …. A period of ethnic conflict following Kenya's 2007 election led to a sharp increase in discrimination. In response, the …
Persistent link: https://www.econbiz.de/10013073086
In this study we experimentally investigate whether solidarity, which is a crucial base for informal insurance arrangements in developing countries, is sensitive to the extent to which individuals can influence their risk exposure. With slum dwellers of Nairobi our design measures subjects'...
Persistent link: https://www.econbiz.de/10012933079