Showing 1 - 10 of 7,538
results therefore indicate that the terms-of-trade theory of trade agreements applies to a broader set of market structures …
Persistent link: https://www.econbiz.de/10012463205
When markets are imperfectly competitive, trade policies can alter the terms of trade, shift profits from one country to another, and moderate or exacerbate existing distortions that are associated with the presence of monopoly power. In light of the various ways in which trade policies may...
Persistent link: https://www.econbiz.de/10012463844
The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its …
Persistent link: https://www.econbiz.de/10012458973
The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these … predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the … theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from …
Persistent link: https://www.econbiz.de/10012470921
We investigate whether a welfare-maximizing government ought to pursue a program of" strategic trade intervention or instead commit itself to free trade when domestic firms will have an opportunity to manipulate the government's choice of the level of" intervention. Domestic firms may overinvest...
Persistent link: https://www.econbiz.de/10012472599
This paper argues that export subsidies aimed at shifting rents from foreign to domestic producers of a final good may also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By contrast, assuming Cournot competition for both the final...
Persistent link: https://www.econbiz.de/10012473404
We describe recent work on the theory of trade agreements that speaks to the purpose and design of GATT. Our discussion … review therefore offers support for the (politically-augmented) terms-of-trade theory as an appropriate framework within …
Persistent link: https://www.econbiz.de/10012470726
and non-discrimination, the two principles that are the pillars of the multi- lateral trading system as embodied in GATT and its successor, the WTO. We show that GATT's principle of reciprocity serves to neutralize the world-price effects of a country's trade policy decisions, and hence can...
Persistent link: https://www.econbiz.de/10012472892
We describe recent advances in the empirical analysis of insurance markets. This new research proposes ways to estimate individual demand for insurance and the relationship between prices and insurer costs in the presence of adverse and advantageous selection. We discuss how these models permit...
Persistent link: https://www.econbiz.de/10012463408
In a market subject to environmental regulation, a firm's strategic behavior affects the production and emissions decisions of all firms. If firms are regulated by a Pigouvian tax, changing emissions will not affect the marginal cost of polluting. However, under a tradable permits system, the...
Persistent link: https://www.econbiz.de/10012465136