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We analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens...
Persistent link: https://www.econbiz.de/10001564540
This paper determines the distributional effects of international outsourcing in a two sector Hechscher-Ohlin type … model. It is shown that the factor-biased and the sector-biased impact of international outsourcing discussed in the … implications of international outsourcing, the main finding is that a Pareto-improvement cannot be excluded from a theoretical …
Persistent link: https://www.econbiz.de/10001623619
This paper provides an analysis of outsourcing and trade in a spatial model à la Hotelling. In this setting, we discuss … the trade-off between transport-cost-related disadvantages and outsourcing-induced production cost advantages of a large …
Persistent link: https://www.econbiz.de/10002542061
We construct a general equilibrium trade model of a two-class small open host or source country. When consumption tax revenue finances the provision of a public good, marginal migration reduces social welfare in the source country and raises it in the host. When consumption tax revenue is...
Persistent link: https://www.econbiz.de/10001539438
bottom of standards. For low-standards countries, there is the fear that this is just a form of disguised protectionism and …
Persistent link: https://www.econbiz.de/10001725375
In this paper we examine the empirical relevance of three prominent endogenous protection models. Is protection for sale, or do altruistic policy makers worry about political support? We find strong evidence that protection is indeed "for sale". The important new result is, however, that not...
Persistent link: https://www.econbiz.de/10014460956
Persistent link: https://www.econbiz.de/10002952555
This paper shows that a manufacturer may benefit from parallel trade. In addition to an intuitive condition about the effect of demand shocks, this occurs when competitive retailers must order inventories before they know the realization of demand and for products whose sale value drops at the...
Persistent link: https://www.econbiz.de/10003065729
Quantitative results from a large class of international trade models depend critically on the elasticity of trade with respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data using the Ricardian...
Persistent link: https://www.econbiz.de/10008904658
This paper introduces the concept of a steepest ascent tariff reform for a small open economy. By construction, it is locally optimal in that it yields the highest gain in utility of any feasible tariff reform vector of the same length. Accordingly, it provides a convenient benchmark for the...
Persistent link: https://www.econbiz.de/10003376625