This paper questions the feasibility of Pareto-type gains from international factor movements, without lump-sum compensations, when taxes (subsidies) on factors and consumers located within the same country cannot discriminate on the basis of national origin. As the analysis shows, no...

This paper develops empirically feasible tests of the production side of the Heckscher-Ohlin model of international trade in the case where factor prices are not equal between countries. To allow for factor-price differences across industries within each country, three variants of the model are...

This paper challenges the conventional academic view that international outsourcing is just another form of gainful trade. Contrary to that view, we show that labourservice outsourcing can reduce the highwage country's welfare even when productmarket trade is beneficial, within a model that...

A modern adaptation of the Ricardian model is used, which incorporates monopolistic competition and multiple factors to derive a MacDougall-type relation between a country's international competitiveness at the industry level and its productivity performance. This relation is implemented...

This paper analyzes the impact of product market competition on unemployment, wage and welfare in a model where unemployment is caused by the efficiency wage consideration and oligopolistic firms compete in quantity. It is shown that while more intense competition in the product market increases...

This paper presents a two-sector dynamic general equilibrium model in which the productivity of the agricultural sector depends on the atmospheric temperature, which in turn is influenced by the activities of the manufacturing sector. The equilibrium time paths of the world economy and...

A game based on the Bertrand duopoly model is constructed to study the effects of price guarantee policies. Before it chooses a list price, a firm can make a binding commitment to match or beat its competitor's price. The effectiveness of these price guarantee policies in facilitating price...

The goal of this paper is to study long-run equilibria in open economies using a new dynamic Heckscher-Ohlin model with endogenous savings and endogenous labor supply. The long-run equilibria in this model exhibit the property of economic hysteresis. The model offers a Heckscher-Ohlin type...