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We empirically investigate the responsiveness of international trade to the stringency of environmental regulation …. Stringent environmental regulation may impair the export competitiveness of ‘dirty’ domestic industries, and as a result … equilibrium model of trade and pollution nesting the pollution haven motive for trade with the factor endowment motive. We analyze …
Persistent link: https://www.econbiz.de/10011334844
Parametric production frontier functions are frequently used in stochastic frontier models, but there do not seem to be any empirical test statistics for its plausibility. To bridge the gap in the literature, we develop two test statistics based on local smoothing and an empirical process,...
Persistent link: https://www.econbiz.de/10011739112
Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …
Persistent link: https://www.econbiz.de/10011334351
Persistent link: https://www.econbiz.de/10000959249
Persistent link: https://www.econbiz.de/10003332112
We examine the setting of national competition policy in a two-country setting,emphasizing the relationship of trade to … equilibrium distributional effects of competition policy, therelationship of national competition policy to terms-of-trade gains … and losses,the implications of "distinct national markets" linked through trade (thestarting point for all trade theorists …
Persistent link: https://www.econbiz.de/10011299975
We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed economy and an international economy. The main findings are the following. (i) There is clear evidence of a vicious circle in the dynamic interaction between the wage tax and...
Persistent link: https://www.econbiz.de/10011304623
Blanchard (2005) suggested that active interest rate policy might induce unstable dynamics in highly-indebted economies. We examine this in a dynamic general equilibrium model where Calvo-type price rigidities provide a rationale for inflation stabilization. Unstable dynamics can occur when the...
Persistent link: https://www.econbiz.de/10011349206
Persistent link: https://www.econbiz.de/10001546151
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