Demographic differences, like young and elderly, and healthy and disabled, are summarized as consumers' heterogeneity in expenditure shares, and introduced into an otherwise standard HO model, together with income distribution in this paper. We prove that free trade may hurt consumers who spend...

Firms' proliferation behavior in a differentiated product market is studied using an oligopolistic competition model with multiproduct firms. The model has the following characteristics: (1) the elasticity of substitution across firm's own products and the elasticity of substitution across...

Direct regulations have two regimes. In one, all firms behave in the same manner and in the other they behave differently. Past work assumed all firms were identical, thereby neglecting the non-monotonicity in comparative statics arising from the regime change

Direct regulations have two regimes. In one, all firms behave in the same manner and in the other they behave differently. Past work assumed all firms were identical, thereby neglecting the non-monotonicity in comparative statics arising from the regime change

The monopolistic competition model is suitable for markets with a large group of relatively small firms. However, it hardly describes oligopoly markets where several multi-national companies dominate the markets and each giant firm produces a large number of products. Such a market structure...

We study a Free Trade Area with Rules of Origin and show that there are two distinct regimes. Comparative statics results for the two regimes are exact opposites and a regime switch occurs when ROO become restrictive enough. Consequently, imports into the FTA of the intermediate good first fall...

This paper develops a dynamic general equilibrium model to explore industrial evolution and economic growth in a closed developing economy. The authors show that industries will endogenously upgrade toward the more capital-intensive ones as the capital endowment becomes more abundant. The model...

In this paper we look at the welfare effects of trade reform in the many-consumers case. We show that Pareto-improving reforms with lump-sum taxation or with non-lump-sum taxation are possible in the small country case if sufficient conditions for welfare to rise in the single-consumer case are met

June 2000 - The extent of corruption in a host country affects a foreign direct investor's choice of investing through a joint venture or through a wholly owned subsidiary. Corruption reduces inward foreign investment and shifts the ownership structure toward joint ventures. Smarzynska and Wei...