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Neary, J. Peter - 2002

This paper reviews some puzzling economic aspects of globalisation and argues that they cannot be satisfactorily addressed in perfectly or monopolistically competitive models. Drawing on recent work, a model of oligopoly in general equilibrium is sketched. The model ensures theoretical...

Persistent link: https://www.econbiz.de/10010293764

The road less travelled: Oligopoly and competition policy in general equilibrium

Neary, J. Peter - 2002

I review previous approaches to modelling oligopoly in general equilibrium, and propose a new view which in principle overcomes their deficiencies: modelling firms as large in their own market but small in the economy as a whole. Implementing this approach requires a tractable specification of...

Persistent link: https://www.econbiz.de/10010293767

Competitive versus comparative advantage

Neary, J. Peter - 2002

I explore the interactions between comparative, competitive and absolute advantage in a two-country model of oligopoly in general equilibrium. Comparative advantage always determines the direction of trade, but both competitive and absolute advantage affect resource allocation, trade patterns...

Persistent link: https://www.econbiz.de/10010293781

Foreign direct investment and the single market

Neary, J. Peter - 2002

This paper extends the theory of multinational corporations, identifying three distinct influences of internal trade liberalisation by a group of countries on the level and pattern of inward foreign direct investment (FDI). First, the tariff-jumping motive encourages plant consolidation. Second,...

Persistent link: https://www.econbiz.de/10010293812

Measuring competitiveness

Neary, J. Peter - 2005

This paper reviews alternative approaches to measuring an economy´s cost competitiveness and proposes some new measures derived from the economic theory of index numbers. The indices provide a theoretical benchmark for estimated real effective exchange rates, but differ from standard measures...

Persistent link: https://www.econbiz.de/10010293887

Coordination failures and the lender of last resort: Was Bagehot right after all?

Rochet, Jean-Charles; Vives, Xavier - 2002

The classical doctrine of the Lender of Last Resort, elaborated by Thornton (1802) and Bagehot (1873), asserts that the Central Bank should lend to „illiquid but solvent“ banks under certain conditions. Several authors have argued that this view is now obsolete: when interbank markets are...

Persistent link: https://www.econbiz.de/10010295507

Dollarization, bailouts, and the stability of the banking system

Gale, Douglas; Vives, Xavier - 2002

Central bank policy suffers from time-inconsistency when facing a banking crisis : A bailout is optimal ex post but ex ante it should be limited to control moral hazard. Dollarization provides a credible commitment not to help at the cost of not helping even when it would be ex ante optimal to...

Persistent link: https://www.econbiz.de/10010295508

Global Income Divergence, Trade and Industrialisation: The Geography of Growth Take-Offs

Baldwin, Richard E.; Martin, Philippe; Ottaviano, … - 1998

This paper takes a step towards formalizing the theoretical interconnections among four post-Industrial Revolution phenomena - the industrialization and growth take-off of rich 'northern' nations, massive global income divergence, and rapid trade expansion. Specifically, we present a stages-of...

Persistent link: https://www.econbiz.de/10010334724

Strategic supply function competition with private information

Vives, Xavier - 2008

A Bayesian supply function equilibrium is characterized in a market where firms have private information about their …, competitiveness is affected by the parameters of the information structure: supply functions are steeper with more noise in the … the collusive level. Furthermore, competition in supply functions aggregates the dispersed information of firms (the …

Persistent link: https://www.econbiz.de/10010264447

Competitive rational expectations equilibria without apology

Kovalenkov, Alexander; Vives, Xavier - 2008

In a standard financial market model with asymmetric information with a finite number N of risk-averse informed traders …

Persistent link: https://www.econbiz.de/10010264474