This paper explores foreign equity caps for international joint ventures under different types of competition, i.e., Bertrand and Cournot competition, with product differentiation. We demonstrate that government sets the foreign equity cap at a laxer level under Cournot competition than under...

In this paper, we study 2-principal points of general location mixtures, including finite and infinite mixtures, of spherically symmetric distributions. A theorem is established that clarifies a linear subspace in which any set of 2-principal points exists.

We investigate the effects of free trade agreements (FTAs) on tariffs and welfare in vertical trade. We consider a three-country model, where an FTA is formed between a country exporting a final good and a country exporting an intermediate good. The FTA unambiguously leads to a reduction in the...

This study considers endogenous determination of domestic standards on products that cause negative consumption externalities in the presence of a preferential trade agreement (PTA) in a three-country world. In particular, we examine how a PTA affects the optimal levels of external tariffs and...

In this paper, first we make a maximal extension of the well-known Gauss-Markov Theorem (GMT) in its linear framework. In particular, the maximal class of distributions of error term for which the GMT holds is derived. Second, we establish a nonlinear version of the maximal GMT and describe some...

We investigate whether non-tradable service FDI is efficient from a welfare point of view. A fixed number of firms strategically decide which markets to locate in and then compete in quasi-Cournot fashion. Considering firm location in two symmetric markets, non-tradable service FDI may or may...

In a general normal regression model, this paper first derives the LUB(least upper bound)for the covariance matrix of a GLSE relative to the applied to the (unrestricted) Zellner estimator in the N-equation SUR model and to the GLSE in a heteroscedastic model.

A set of n-principal points of a distribution is defined as a set of n points that optimally represent the distribution in terms of mean squared distance. It provides an optimal n-point-approximation of the distribution. However, it is in general difficult to find a set of principal points of a...