Showing 1 - 10 of 2,473
In the automobile industry, as in many tradable goods markets, firms usually earn their highest market share within … their domestic market. The goal of this paper is to disentangle the supply- and demand-driven sources of the home market … advantage. While trade costs, foreign production costs, and taste heterogeneity all matter for market outcomes, we find that a …
Persistent link: https://www.econbiz.de/10012457086
This paper explores how non-U.S. central banks behave when firms in their economies engage in currency mismatch, borrowing more heavily in dollars than justified by their operating exposures. We begin by documenting that, in a panel of 53 countries, central bank holdings of dollar reserves are...
Persistent link: https://www.econbiz.de/10013477280
of the World (ROW) is developed to quantify capital controls and evaluate their impact on the world economy. We find … these controls had large effects. Counterfactual analysis show world output would have been 0:5 percent higher had there …
Persistent link: https://www.econbiz.de/10014337829
We argue that trade in intermediate inputs, or 'global production sharing,' is a potentially important explanation for the increase in the wage gap between skilled and unskilled workers in the U.S. and elsewhere. Using a simple model of heterogeneous activities within an industry, we show that...
Persistent link: https://www.econbiz.de/10012470348
exporters of capital goods to the rest of the world. We develop a model of trade in capital goods to assess its role spreading …
Persistent link: https://www.econbiz.de/10012470659
This paper explores the relationship between exchange rate pass-through and market share for monopolistically … with a very large share of total destination market sales. For source countries with small and intermediate market shares …-through and market share is significantly non-linear: pass-through is the lowest when the source country's market share is around …
Persistent link: https://www.econbiz.de/10012474552
The actual value added tax systems used in many countries differ significantly from the completely general VAT that has been the focus of most economic analyses. In practice, VAT systems exempt broad classes of consumer goods and services. This has important implications for the effect of the...
Persistent link: https://www.econbiz.de/10012475878
We analyze a two-country model of trade in both legitimate and counterfeit products. Domestic firms own trademarks and establish reputations for delivering high-quality products in a steady-state equilibrium. Foreign suppliers export legitimate low-quality merchandise and counterfeits of...
Persistent link: https://www.econbiz.de/10012477200
Common wisdom dictates that uncertainty impedes trade--we show that uncertainty can fuel more trade in a simple general equilibrium trade model with information frictions. In equilibrium, increases in uncertainty increase both the mean and the variance in returns to exporting implying that trade...
Persistent link: https://www.econbiz.de/10012479559
Why did per capita income divergence occur so dramatically during the 19th Century, rather than at the outset of the Industrial Revolution? How were some countries able to reverse this trend during the globalization of the late 20th Century? To answer these questions, this paper develops a...
Persistent link: https://www.econbiz.de/10012479692