Recent evidence shows that the "home bias puzzle" in international trade may be associated with the mere presence of national borders (McCallum (1995)). In this paper we provide a theoretical framework to explain why borders may matter so much for trade. Our argument is that even between...

In this paper, we analyze the trade war between two large countries when the trade policy is decided through majority voting. We show how the distributive aspect of trade policy interacts with the strategic aspect. It is shown that the voting equilibrium depends on the distribution of the factor...

Recent evidence shows that the “home bias puzzle” in international trade may be associated with the mere presence of national borders (McCallum (1996)). In this paper we provide a theoretical framework to explain why borders may matter so much for trade. Our argument is that even between...

In this paper we first introduce an approach relying on market games to examine how successive oligopolies operate between downstream and upstream markets. This approach is then compared with the traditional analysis of oligopolistic interaction in successive markets. The market outcomes...

We introduce imperfect labor markets into the tax competition framework. Countries set tax rates on profit and income. Labor is immobile across countries, while capital is mobile. We show the importance of asymmetries in labor market institutions for the optimal tax policy. While most of the...

Because the patent system is nowadays under criticisms, it is legitimate to question whether patents provide the best incentive mechanism for innovation. Wouldn?t it be preferable to base incentives on a reward system? This is the question addressed in this article, first in a general...

[fre] Métropoles et concurrence territoriale Le développement des activités économiques autour des grandes villes (métropolisation de l'économie) et la concurrence croissante entre régions pour attirer les: investissements forment les tendances lourdes de la recomposition actuelle des...