Showing 1 - 10 of 21
We study structural change in a simple, two-sector endogenous growth model and show that the presence of commodity-specific consumption externalities can be a source of structural change. When the degrees of consumption externalities are different between different goods, the two sectors grow at...
Persistent link: https://www.econbiz.de/10010332246
This paper explores the roles of internal and external habit formation in a simple model of endogenous growth with overlapping generations. Unlike the representative agent settings in which the distinction between internal and external habits may not yield significant qualitative differences in...
Persistent link: https://www.econbiz.de/10010332446
This paper explores the long-run impacts of tax policy in a two-country model of endogenous growth with variable labor supply. We focus on international spillover effects of tax reforms under alternative trade structures. It is shown that if the instantaneous utility function of the...
Persistent link: https://www.econbiz.de/10010398641
PTAs are generally negotiated without any tariff concessions or transfers to non-member countries. Can such a PTA benefit the neighbors' welfare? In a two-good competitive equilibrium model in the absence of an entrepôt, a PTA without concessions to the outside will hurt the outsider's welfare...
Persistent link: https://www.econbiz.de/10010264880
We develop a model of international trade with increasing returns to scale by taking into account the possibility of cooperation among agents in an egalitarian economy. It is shown that each country gains from trade in a trading world in which there are arbitrary numbers of...
Persistent link: https://www.econbiz.de/10010397900
In two-sector infinite-horizon trade models with factor–price-equalization, convergence of aggregate capital-labor ratios and incomes does not occur because the Euler equations imply equal growth rate of consumption in all economies. In a two-country dynamic specific factors model, we show...
Persistent link: https://www.econbiz.de/10011522527
This paper builds coordination costs, transaction costs, and other aspects of the theory of the firm into a production chain model with an infinite number of ex ante identical producers. The equilibrium determines prices, allocations of productive tasks across firms, firm sizes, and the number...
Persistent link: https://www.econbiz.de/10012010042
We analyze a model that focuses on the export/outsource decision. Outsourcing has the advantage of providing better information about local preferences. The disadvantage is that producing in the host country also means using the inferior technology embodied in the local capital. The decision of...
Persistent link: https://www.econbiz.de/10010264307
Despite widespread acceptance of the idea that strategic flexibility is critical to the success of firm's operations management, strategic flexibility in supply chain management remains largely unexplored by researchers. To fill this research gap, this study attempt to propose the theoretical...
Persistent link: https://www.econbiz.de/10010368698
This paper investigates the relationship between money growth, inflation, and productive activity in a general equilibrium model of search. The use of a multiple-matching technique, where trade frictions are captured by limited consumption variety, allows us to study price determination in a...
Persistent link: https://www.econbiz.de/10010397425