In this paper, we provide evidence of frictions associated with trade in goods and services among Canadian provinces. We examine empirical relationships between sector- and industry-level trade flows and trading frictions associated with intra-provincial trade, inter-provincial trade, and...

There are at least two versions of the Law of One Price under the assumptions of perfect competition, no trade barriers, and no transport costs. One version predicts equal prices of competing goods sold in the same country and manufactured by producers located in different countries. Another...

Monthly West German producer, export, and import price indices are examined to investigate relationships among international prices. The data provides evidence of highly persistent time-varying deviations in the Law of One Price both across countries by a single producer and within a country by...

Strategic interaction among oligopolistic innovators and its implications for economic growth are examined in two dynamic computable general equilibrium models. In each environment, technologies for producing a final good are such that the profits of any intermediate good producer depend on the...

The effects of an unilateral tariff on prices, quantities, and welfare in the presence of a dynamic elements facing imperfectly competitive firms is examined. International duopolists, selling differentiated products, interact strategically in price setting game under the tariff policy. It is...

It is shown that steady state Markov perfect equilibria of discrete time, infinite horizon, quadratic, adjustment cost games differ from equilibria of their infinitely repeated counterpart games with zero adjustment costs even though no adjustment costs are paid in the steady state. In contrast...

The effects of entry and exit by monopolistically competitive intermediate goods producers on equilibrium business cycles are analyzed in the presence of internal returns to scale and external returns to specialization. In the environment studied, market power and endogenous entry and exit, in...

This paper examines the transitional dynamics of economic integration in the two country endogenous growth model of Rivera-Batiz and Romer (1991) and in an extension by Rivera-Batiz and Xie (1992). It is shown that, in the absence of knowledge flows across countries economic integration will...

A puzzle in the analysis of trade policy is why free trade outcomes, which maximize world income, are not more often observed. One reason is that economics agents with special interests affect both the form and level of international protective policies. This paper investigates the dynamic...