Strategic trade policy affects foreign-based furn's internationalization mode. In this paper, we endogenize market structure and tariff policy by considering a sequential game in which (i) a policy-maker maximizes national welfare, (ii) aforeign-based furn decides whether to supply the...

An example of an exchange economy is provided, satisfying all the assumptions as in Dubey-Shubik (1988), for which the trivial Nash Equilibrium is the unique equilibrium point of the associated market game. From this example, we are led to propose an argument, related to the intensity of...

In many european countries, public opinion seems to be worried about the effect of lower-wage country competition. In newspapers' articles, as well as in policy debates, the terms "social dumpingll becomes more and more popular. Trade unions, worried by the effect of what they call "unfair...

Domestic transfers such that all individuals gain in utility with international trade, compared to domestic autarky, need not exist.

In this paper we investigate, via an example, the effects of oligopolistic competition in a two countries two goods" Ricardian" model of international trade. By contrast with results that apply to the competitive free trade equilibrium, at the oligopoly equilibrium industries with different...

We analyze the principle of comparative advantage when agents in the world market are aware of the influence their individual supply exerts on the equilibrium exchange rate of goods. We show that specialization following comparative disadvantage can be an oligopoly equilibrium in a Ricardian...

It is a well known result that through national lump sum taxes and transfers everybody can gain from international trade. This is always the case when domestic lump sum tax and transfers are implemented before trade. This brief note points out that if domestic transfers are possible only after...

Do Highly Indebted Poor Countries (HIPCs) suffer from a debt overhang? Is debt relief going to improve their growth rates? To answer these important questions, we look at how the debt-growth relationship varies with indebtedness levels and other country characteristics in a panel of developing...

This paper studies the impact of competition on the determination of interest rates and banks’ risk-taking behavior under different assumptions about deposit insurance and the dissemination of financial information. It finds that lower entry costs foster competition in deposit rate sand reduce...

To cope with the self-fulfilling liquidity runs that triggered many recent financial crises, we propose the creation of a country insurance facility. The facility, which we envisage as complementary to the existing multilateral lending facilities, would provide eligible countries with automatic...