Motivated by increasing trade and fragmentation of production across countries since World War II, we build a dynamic two-country model featuring sequential, multistage production and capital accumulation. As trade costs decline over time, globalvalue-chain (GVC) trade expands across countries,...

Motivated by increasing trade and fragmentation of production across countries since World War II, we build a dynamic two-country model featuring sequential, multistage production and capital accumulation. As trade costs decline over time, globalvalue-chain (GVC) trade expands across countries,...

A large empirical literature finds that there is too little international trade, and too much intra-national trade to be rationalized by observed international trade costs such as tariffs and transport costs. The literature uses frameworks in which goods are assumed to be produced in just one...

We build a quantitative model of trade with multistage manufacturing value chains, which features iceberg trade costs and technology differences across both goods and production stages. We estimate technology and trade costs via the simulated method of moments, matching bilateral shipments of...

We build a quantitative model of trade with multistage manufacturing value chains, which features iceberg trade costs and technology differences across both goods and production stages. We estimate technology and trade costs via the simulated method of moments, matching bilateral shipments of...

To explain organizational decisions in multistage production processes we assume a production process with one producer and two suppliers of which one is the firm's direct supplier and the other one is the supplier of the supplier. The firm decides only on the organizational form of her direct...

Organizational decisions in multistage production processes are often not made by the downstream headquarter firm, but by the various intermediate inputs suppliers along the value chain themselves. We assume a production process with one headquarter (final good producer) and two suppliers at...

We consider a heuristic for serial production systems with random yields and rigid demand: all usable units exiting a stage move forward. We calculate optimal lots and corresponding expected costs for binomial, interrupted-geometric, and all-or-nothing yields. Our method is that it makes it easy...

The increased complexity of contemporary manufacturing makes it hard to maintain a predictable level of output. We consider several types of multistage systems in an environment where yield is random, production is in lots and demand needs to be satisfied in its entirety. For each possible...

Use of common parts for different products (commonality) is important methods for managing product variety and preserving competitiveness in the age of mass customization and supply chain competition. In literature, the advantages of inclusion of common components in a product family are well...

This paper presents an optimization-based solution approach for the dynamic multi-level capacitated lot sizing problem (MLCLSP) with positive lead times. The key idea is to solve a series of mixed-integer programs in an iterative fix-and-optimize algorithm. Each of these programs is optimized...

The seminal work of Freebairn, Davis and Edwards (FDE, 1982) showed that in a multistage production system, research that reduces production costs at one stage provides benefits to producers at all stages and to consumers. This work assumed a partial equilibrium environment, while producers...

The seminal work of Freebairn, Davis and Edwards (FDE, 1982) showed that in a multistage production system, research that reduces production costs at one stage provides benefits to producers at all stages and to consumers. This work assumed a partial equilibrium environment, while producers...

This paper presents the theoretical and numerical structure of WOOLGEM – a general equilibrium model of the world wool market which treats raw wool, wool textiles and wool garments as heterogeneous commodities. The model divides the world wool market into nine geographical regions and...