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Targeted Export Promotion with Several Oligopolistic Industries

Dixit, Avinash K. - 1984

In this paper we ask whether a policy of targeted export promotion can raise domestic welfare when several oligopolistic industries all draw on the same scarce factor of production. Our point of departure is one of Cournot duopoly in which a single home firm competes with a single foreign firm...

Persistent link: https://www.econbiz.de/10012477753

Optimal Wage Indexation, Foreign-Exchange Intervention and Monetary Policy

Aizenman, Joshua - 1984

which affect the economy and by the information set that individuals possess. Because of cost of negotiations, nominal wages … available information and, may result in welfare loss. The analysis specifies the optimal set of feedback rules that should … independent sources of information that influence the determination of the undistorted equilibrium. Thus, it is shown that with a …

Persistent link: https://www.econbiz.de/10012477765

Optimal Price Adjustment with Time-Dependent Costs

Aizenman, Joshua - 1984

The purpose of this paper is to analyze an optimal pricing rule for the case in which the costs of price adjustment are time dependent, and where those costs depend positively on the magnitude of the percentage price change. By means of discrete time model, it is shown that the optimal response...

Persistent link: https://www.econbiz.de/10012477778

Incentive Effects of Taxes on Income From Capital : Alternative Policies in the 1980's

Fullerton, Don - 1984

In this paper, we evaluate existing tax law as of 1980, President Reagan's tax reform initiatives as enacted in the Economic Recovery Tax Act of 1981 (ERTA) and the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), as well as other proposals that were not enacted. For each law, we...

Persistent link: https://www.econbiz.de/10012477835

Tariff Liberalization Policy and Financial Restrictions

Aizenman, Joshua - 1983

The purpose of this paper is to assess how restrictions on capital mobility affect adjustment to a tariff liberalization policy. This is done by comparing the adlustment process under free and restricted convertibility of foreign assets in a regime where the commercial exchange rate is pegged....

Persistent link: https://www.econbiz.de/10012477844

Optimal Trade and Industrial Policy Under Oligopoly

Eaton, Jonathan - 1983

In this paper we provide an integrative treatment of the welfare effects of trade and industrial policy under oligopoly, and characterize qualitatively the form that optimal intervention takes under a variety of assumptions about the number of firms, their conjectures about the response of their...

Persistent link: https://www.econbiz.de/10012477861

Openness, Relative Prices and Macro Policies

Aizenman, Joshua - 1983

This paper analyzes the role of relative prices in the conduct of wage indexation and monetary policy in a small economy producing traded and non-traded goods under a flexible exchange rate regime. It is shown that the beneficial effect of using relative prices in addition to aggregate prices as...

Persistent link: https://www.econbiz.de/10012477864

Wage Contracts with Incomplete and Costly Information

Aizenman, Joshua - 1983

Optimal wage indexation, as derived by Gray, was subject to criticism due to a lack of efficient use of information … the insight of Cray's analysis. In so doing the analysis reveals the role of costs of information collection in a world … characterized by incomplete information.The analysis focuses also on the interaction between wage indexation and costly information …

Persistent link: https://www.econbiz.de/10012477951

Wage Flexibility and Openness

Aizenman, Joshua - 1983

This paper analyzes the degree of short-run, real wage flexibility in a two-sector economy under floating rates. This is done by deriving optimal wage indexation in a contracting framework. We find that the more closed the economy, the lower the degree of wage indexation. As a result, output...

Persistent link: https://www.econbiz.de/10012477994

Adjustment to Monetary Policy and Devaluation Under Two-Tier and Fixed Exchange Rate Regimes

Aizenman, Joshua - 1983

The purpose of this paper is to determine whether a two-tier exchange rate regime is more effective than a fixed rate regime in increasing acountry's ability to pursue an independent monetary policy in the short run.The analysis compares adjustment to a monetary policy and to a devaluation in...

Persistent link: https://www.econbiz.de/10012477995