We demonstrate that the Varian (1980) model of sales has a unique Nash equilibrium when firms incur costly advertising to compete for informed consumers. The equilibrium is symmetric. In particular, with costly advertising, the asymmetric equilibria highlighted by Baye et al. (1992) do not arise.

The objective of this study is to examine the impact of exchange rate on Nigeria’s trade balance. Time series data on trade balance, external reserves, exchange rate, money supply and real GDP were used in the analysis and the data were subjected to unit root tests to determine their time...

This paper estimates long-run and short-run trade elasticities of export demand for Guyana, Jamaica, and Trinidad and Tobago. To that end, a traditional export demand model is estimated for all three countries in the study using the bounds test for analyzing level relationships within the...

Using a long-run series of I-O tables, some simple facts are explored with respect to the Italian trade balance in the period 1960-2000. The analysis confirms that the Italian economy underwent a de-specialisation process before the euro era. This phenomenon weakened our export capacity, and in...

Lots of studies were produced in the past decade on the importance of the quality of the institutions for economic development. Several authors focused on the indicators provided by Doing Business (World Bank) to highlight the main factors favouring or rather limiting the economic development....

The aim of this study is to provide a succinct description of the specialisation model of four economies on the southern shores of the Mediterranean (Algeria, Egypt, Morocco and Tunisia) and its recent evolution, concentrating in particular on the merchandise trade. The analysis shows, according...

A defining feature of globalization is the fragmentation of individual blocks of an integrated production process across countries. This necessitates flows of final goods as well as their parts and components back and forth among the involved nations. A depreciation of a country’s currency...

We show that, in general, consistent estimates of cost pass-through are not obtained from reduced-form regressions of price on cost. We derive a formal approximation for the bias that arises even under standard orthogonality conditions. We provide guidance on the conditions under which bias may...

We analyze the sourcing strategies of firms active in the Spanish manufacturing sector. We show that firms that select strategies of vertical integration and of foreign sourcing ex post tend to have been more productive, ex ante, than other firms.

This study measures the spread effects of export expansion in Sri Lanka. Leontief open input-output analysis is used to examine the backward and forward linkages in selected industries in terms of production and employment. The results suggest that the sectoral interdependence of the economy in...