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Reciprocal Dumping with Bertrand Competition

Friberg, Richard; Ganslandt, Mattias - C.E.P.R. Discussion Papers - 2005

This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated goods. We show that welfare is a U-shaped function in the transport cost as long as trade occurs in equilibrium. With a Cournot duopoly trade can reduce welfare compared to...

Persistent link: https://www.econbiz.de/10005792025

Economic Integration and Investment Incentives in Regulated Industries

Auriol, Emmanuelle; Biancini, Sara - C.E.P.R. Discussion Papers - 2009

The paper studies the impact of market integration on investment incentives in non-competitive industries. It … distinguishes between investment in transportation and production cost-reducing technologies. Each domestic firm is controlled by a … investment in cost-reducing technology compared to autarky. This is in contrast with the systematic underinvestment problem …

Persistent link: https://www.econbiz.de/10005012490

Country Size, Productivity and Trade Share Convergence: An Analysis of Heterogenous Firms and Country Size Dependent Beachhead Costs

Akerman, Anders; Forslid, Rikard - C.E.P.R. Discussion Papers - 2007

This paper modifies the heterogenous firms and trade model by Melitz (2003) by explicitly modelling the entry cost of a firm in a new market as a function of market size. This leads to several new predictions compared to the standard model: The productivity of non exporters and exporters depends...

Persistent link: https://www.econbiz.de/10005504343

Firms Agglomeration and Unions

Picard, Pierre M; Toulemonde, Eric - C.E.P.R. Discussion Papers - 2002

This Paper develops a model in which the interaction between product market imperfections, transportation costs, unions and workers immobility across regions creates a tendency for agglomeration of firms when transportation costs are low. The model fits quite well the European experience. It is...

Persistent link: https://www.econbiz.de/10005504420

`1992': Trade and Welfare; A General Equilibrium Model

Gasiorek, Michael; Smith, Alasdair; Venables, Anthony J - C.E.P.R. Discussion Papers - 1992

This paper investigates the consequences of the completion of the internal market in the EC using a computable general equilibrium model of trade under imperfect competition. The focus of the paper is the welfare consequences of reducing trade barriers and the changes in production and trade...

Persistent link: https://www.econbiz.de/10005504484

Country Asymmetries, Endogenous Product Choice and the Speed of Trade Liberalization

Cabrales, Antonio; Motta, Massimo - C.E.P.R. Discussion Papers - 1996

We analyse the effects of trade liberalization on firms' decisions and profits, and on consumers' welfare, in a product differentiation model with countries of different size. Firms decide product specifications at the beginning of the game, in which autarky is followed by trade liberalization...

Persistent link: https://www.econbiz.de/10005504506

Competing for Capital in a 'Lumpy' World

Kind, Hans Jarle; Schjelderup, Guttorm; Ulltveit-Moe, … - C.E.P.R. Discussion Papers - 1999

This paper uses a new economic geography model to analyze tax competition between two countries trying to attract internationally mobile capital. Each government may levy a source tax on capital and a lump sum tax on fixed labor. If industry is concentrated in one of the countries, the analysis...

Persistent link: https://www.econbiz.de/10005504508

Make Trade not War?

Martin, Philippe; Mayer, Thierry; Thoenig, Mathias - C.E.P.R. Discussion Papers - 2005

This paper analyses theoretically and empirically the relationship between trade and war. We show that the intuition that trade promotes peace is only partially true even in a model where trade is beneficial to all, war reduces trade and leaders take into account the costs of war. When war can...

Persistent link: https://www.econbiz.de/10005504509

The 'Genome' of NEG Models with Vertical Linkages: A Positive and Normative Synthesis

Ottaviano, Gianmarco; Robert-Nicoud, Frédéric - C.E.P.R. Discussion Papers - 2004

This Paper takes a broader look at how vertical linkages can trigger the spatial agglomeration of economic activity in a ‘new economic geography’ (NEG) set-up. First, it formally establishes the key positive features of a wide class of vertical-linkage models without resorting to numerical...

Persistent link: https://www.econbiz.de/10005504527

Regional Wage and Employment Responses to Market Potential in the EU

Head, Keith; Mayer, Thierry - C.E.P.R. Discussion Papers - 2005

differentials in what we call real market potential, a discounted sum of demands derived from the theory. …

Persistent link: https://www.econbiz.de/10005504642