We develop a dynamic model of intermediate goods trade in which the pattern and the extent of intermediate goods trade are endogenous. We consider a small open economy whose final good production employs an endogenous array of intermediate goods, from low technology (high cost) to high...

When a poublic good ist excludable it is possible to charge individuals for using the good. We study the role of prices onexcludable public goods using an extension of the Stiglitz-Sternversion of the Mirrlees optimal income tax model. Our discussionincludes both the case where the public good...

This paper develops a multi-sector full-employment general equilibrium model for a typical developing country (DC hereafter) like India with internationally non-traded goods and international fragmentation in skill-intensive production, to explore the general equilibrium impact of such...

We present a factor-proportions trade model in which heterogeneous firms can offshore intermediate inputs subject to fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor-intensive inputs to the labor-abundant countries than...

This paper explores the role of pooled-producer, e.g. private label, trade intermediation in shaping the range and diversity of exports. Direct sales maintain a firm's unique product characteristics ("brand equity"), whereas trade through an intermediary can take two forms - either a wholesaling...

We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy. Firms import intermediate inputs from home or...

This paper studies how the Intellectual Property Right (IPR) regime in destination countries influences the way multinationals structure the international organization of their production. In particular, we explore how multinationals divide tasks of different complexities across countries with...