Showing 1 - 10 of 268
We show that agglomeration forces can reverse standard international-tax-competition results. Closer integration may result first in a race to the top' and then a race to the bottom, a result that is consistent with recent empirical work showing that the tax gap between rich and poor nations...
Persistent link: https://www.econbiz.de/10005084777
This paper presents a theoretical basis fcr the srgunent that large exchange rate shocks - such as the rise of the dollar from 1980 to 1985 - may shift historical relationships between exchange rates and trade flows. We begin with partial models in which large exchange rate fluctuations lead to...
Persistent link: https://www.econbiz.de/10005829713
This paper presents a theoretical basis for the argument that large exchange rate shocks--such as the 1980s dollar cycle--may have persistent effects on trade flows and the equilibrium exchange rate itself. The authors begin with a partial-equilibrium model in which large exchange rate...
Persistent link: https://www.econbiz.de/10005814751
This paper develops a model of international competition in an oligopoly characterized by strong learning effects. The model is quantified by calibrating its parameters to reproduce the US-Japanese rivalry in 16K R.A.Ms from 1978-1983. We then ask the following question: how much did the...
Persistent link: https://www.econbiz.de/10005049959
Persistent link: https://www.econbiz.de/10005601500
This paper considers tax competition and tax harmonization in the presence of agglomeration forces and falling trade costs. With agglomerative forces operating, industry is not indifferent to location in equilibrium, so perfectly mobile capital becomes a quasi-fixed factor. This suggests that...
Persistent link: https://www.econbiz.de/10005755438
Persistent link: https://www.econbiz.de/10014713924
This paper presents a new model of the domino effect which is used to generate an empirical index of how "contagious" FTAs are with respect to third nations due to the trade diversion. We test our contagion hypothesis together with alternative specifications of interdependence and other...
Persistent link: https://www.econbiz.de/10008550319
Feedback mechanisms are the key to sequencing when it comes to regional integration. Feedback mechanisms can mean that today’s policy or institution alters the political economy landscape in a way that makes it politically optimal for future governments to take further steps towards...
Persistent link: https://www.econbiz.de/10008468652
Our paper integrates results from trade-in-task theory into mainstream trade theory by developing trade-in-task analogues to the four famous theorems (Heckscher-Ohlin, factor price equalisation, Stolper-Samuelson, and Rybczynski) and showing the standard gains-from-trade theorem does not hold...
Persistent link: https://www.econbiz.de/10008468674