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Author : Kanda Naknoi
Publisher :
ISBN 13 :
Total Pages : 246 pages
Book Rating : 4.F/5 ( download)
Download or read book Three Essays on Economic Effects of Trade Costs written by Kanda Naknoi and published by . This book was released on 2004 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Luca Macedoni
Publisher :
ISBN 13 : 9780355151237
Total Pages : pages
Book Rating : 4.1/5 (512 download)
Download or read book Essays on Prices and Varieties in International Trade written by Luca Macedoni and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The effects of international economic integration on the prices the firms charge and the number of varieties available for consumption is crucial for the welfare of consumers. This dissertation is a compilation of three essays, which, using both theory and empirical analysis, study the determinants of prices and of the number of varieties available for consumption. Recent empirical work has shown that world trade is dominated by firms producing multiple products, and that a few large exporters, or superstars, account for most of a country's exports. These findings challenge traditional models of trade, in which each firm is small and produces a single product. The first two chapters of my dissertation study how the presence of multiproduct firms and superstars affects the predictions of the traditional models of trade. In chapter one, I study the effects of international integration on consumers' welfare in the presence of large multiproduct exporters. The welfare of consumers depends on how large firms choose the number of the varieties they export - their product scope. I focus on two determinants of the scope of large exporters: income effects and cannibalization effects, namely the reduction in a firm's own sales following the introduction of a new variety. Several sources of data confirm the empirical relevance of the two determinants: 1) the product scope increases with the per capita income of the destination, and 2) as evidence of cannibalization effects, there exists a hump-shaped relationship between product scope and market share of a firm. I build a model of large multiproduct firms that generates results consistent with the empirical evidence. The model features firms competing oligopolistically and consumers with non-homothetic preferences. What are the effects of international integration on the welfare of consumers? To answer to this question, I derive a new formula for the welfare gains from trade that arise in a world of large multiproduct exporters. The formula highlights the contributions of income and cannibalization effects to the welfare gains from trade. In fact, models that ignore income effects would overestimate the gains from trade, while models that ignore cannibalization effects underestimate the gains. Moreover, neglecting cannibalization effects causes a sizable underestimation of the gains from trade in more concentrated industries. A common prediction of standard models of multiproduct firms is that firm's total sales are proportional to the firm's scope. The underlying assumption is that the ability of a firm to produce efficiently a variety is proportional to its ability to introduce new varieties. In chapter two, joint with Mingzhi Xu, we document that such a prediction performs poorly in the data. Using Chinese firm-level data, we find a disconnect between sales and scope across firms within a destination: for any level of sales, there are several single product firms and wide scope firms. Moreover, firm-destination specific shocks explain more than 50% of the variation in scope across firms and destinations, and the scope of exporters conditional on sales depends on measurable characteristics of firms, such as capital intensity and R&D expenditures. We rationalize the three stylized facts in a model in which firms differ in their productivity and in their flexibility, namely the ability to introduce new varieties in a destination at low costs. The additional layer of heterogeneity has new implications for both intensive and extensive margins of trade.While the first two chapters of the dissertation study how economic integration - modeled as a reduction in trade frictions - affects the welfare of consumers, in the third chapter, I examine those trade frictions, decomposing their nature and their effects. Recent research showed that deviations from the Law of One Price are starkly smaller within a currency union. Can a reduction in trade costs within a currency union explain this fact? I answer to this question in chapter three. I apply Heckscher's insight that transaction costs create bands of inaction in which price differences are not arbitraged away. Only when price differences exceed a certain threshold does arbitrage become profitable and prices begin to converge. A simple model of international arbitrage predicts that bands of inaction between two countries increase with trade costs and decline with the countries' sizes. I use monthly disaggregated price indices from 32 European countries from 1999 to 2016 and estimate the bands of inaction for the relative prices of 43 tradable commodities, using a Threshold Autoregressive Model. Currency unions reduce trade costs: the bands of inaction between countries that are in the European Monetary Union are 17% lower than the average band.
Author : Inderjit Kohli
Publisher :
ISBN 13 :
Total Pages : 320 pages
Book Rating : 4.:/5 (33 download)
Download or read book Three Essays on International Trade Policy and Political Economy written by Inderjit Kohli and published by . This book was released on 1992 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Hanpil Moon
Publisher :
ISBN 13 :
Total Pages : 258 pages
Book Rating : 4.:/5 (668 download)
Download or read book Three Essays on International Trade and Regional Productivity written by Hanpil Moon and published by . This book was released on 2011 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: A firm's productivity is composed of two parts: pure technical change and location-specific (agglomeration) externalities. Regional productivity is thus an aggregation of productivity of firms producing similar goods and located in a given region. International trade can affect both components of regional productivity. First, trade openness in a closed economy may alter its internal economic geography. Some regions which become more attractive to firms than before gain an advantage over others from integration into global markets. Second, as a competition pressure, trade liberalization forces the least productive firms to exit, resulting in the growth of aggregate productivity in the industry. The three essays presented in this dissertation explore the relationship between international trade and regional productivity in the presence of heterogeneous firms. In the first essay, a theoretical framework is introduced in order to describe how the above two channels, through which trade affects regional productivity, shape a country's spatial distribution of productivity. Results show that industries, each having its own cost-minimizing location, can be spatially relocated within a country via heterogeneous trade liberalization across industries. Moreover, trade intensifies localization for each industry since most firms in an industry move to or gather around their industry-specific cost- minimizing location. The consequent clustering of firms generates additional localization economies. More importantly, the intensification of localization economies can slow or delay the selection process, i.e. exit of low productivity firms, following trade liberalization. These findings suggest that trade openness induces significant industrial and spatial dynamics (entry, exit and survival) within an economy. The second and third essays are empirical tests on the second channel through which trade openness affects regional productivity using county-level data from Korea and firm-level data from India, respectively. In addition to trade liberalization, regional infrastructure is considered to be another competition pressure for domestic firms, i.e. improved infrastructure in a region induces a similar selection process among firms. These empirical essays investigate the effect of falling trade costs and improving domestic infrastructure on the regional variation of raw productivity using a common methodology. That is, a spatial econometric procedure is applied to a production function framework to estimate total factor productivity (TFP) by region and industry, while controlling for potential external and spatial effects. The mean and alternative percentiles of the regional raw productivity distribution are then specified as functions of international and domestic competition indicators. International competition is represented by trade costs, which are estimated as frictions in a gravity-type trade model, while road density is considered to capture the level of a region's infrastructure. In both Korea and India, it is found that trade costs reduction significantly shifted to the right, particularly the 10th percentile value of, the regional productivity distribution. However, a change in the level of infrastructure appears to bring about a higher change in regional productivity relative to a change in the international competition level. Therefore, the relative contribution of trade costs and infrastructure to regional productivity should be evaluated with attention to the costs underlying these options for regional development.
Author : Kai Xu
Publisher :
ISBN 13 :
Total Pages : 314 pages
Book Rating : 4.:/5 (16 download)
Download or read book Essays on International Trade written by Kai Xu and published by . This book was released on 2011 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis consists of three essays on the economic effects of agricultural and non-agricultural trade. The first essay asks whether the observed low trade intensity of agricultural goods is caused by high trade costs or small gains from agricultural trade. By empirically estimating structural equations from a trade model, I find that it is largely due to high trade costs. I also find large variation in relative efficiency of producing agricultural goods, which suggests that lower agricultural trade costs could lead to large gains from trade. The second essay asks how large are the gains from lower trade costs in the presence of the "Food Problem". I extend the Eaton-Kortum trade model to include a tradeable agriculture sector, minimum consumption and home production of agricultural goods. The calibrated model implies much larger gains from trade for poor countries than prior studies. The main reason for these gains is that intra-sectoral trade leads poor countries to specialize in a set of agricultural goods with high efficiency and inter-sectoral trade enables them to reallocate labor to manufacturing, which often is their comparative advantage sector. The third essay quantitatively evaluates the potential impact of removing China's Hukou system, which restricts rural-urban migration in China, on the world economy. I find that removing Hukou could increase China's income by 4.7%, and would substantially impact some of China's small neighboring economies. This is because removing Hukou increases the relative price of agricultural goods, which benefits net agricultural exporters such as Thailand and hurts net agricultural importers such as Sri Lanka and Bangladesh.
Author : Tereso S. Tullao
Publisher :
ISBN 13 :
Total Pages : 158 pages
Book Rating : 4.3/5 (91 download)
Download or read book Three Essays on Trade and Development written by Tereso S. Tullao and published by . This book was released on 1987 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Li Zhou
Publisher :
ISBN 13 : 9781124032795
Total Pages : 204 pages
Book Rating : 4.0/5 (327 download)
Download or read book Three Essays on International Trade and Economic Development written by Li Zhou and published by . This book was released on 2010 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three self-contained chapters on international trade and economic development, with a special focus on the involvement of the government or public-funded sectors. The first chapter investigates international trade of higher education, specifically its impact on native students and native workers in the exporting country. Theoretically, I show that, in a general equilibrium model with non-profit publicly-subsidized higher education providers (HEPs) that care about both education quality and the enrollment of native students, serving foreign students may improve natives' access to higher education, which eventually benefits all native workers. Empirically, I find that, during the period 2001 to 2007, the enrollment of one more foreign student in an Australian university leads to the enrollment of around 0.75 more native students in this university. The impact is identified using an instrumental variable, generated from the interaction between demand for Australian higher education from different countries during the sample period and student networks these countries had in different Australian HEPs during 1989 to 1994. The second chapter studies commercial development in the presence of economic agglomeration of commercial goods and services, a result of consumers' love of varieties and transportation costs associated with commercial consumption. I show that a low-income community may be under-served with commercial goods and services because a developer cannot capture all the profits of a commercial project. A block grant to a developer can solve the market failure and generate a total profit bigger than the grant. Employment tax abatements alone are much less effective and much more costly. The third chapter examines the long-run impact of trade in higher education. In an overlapping generation (OG) model with a higher education sector composed of non-profit research institutions and for-profit teaching institutions, I show that importing teaching services benefits low-ability individuals by increased number of research workers in production, and that it may also benefit high-ability individuals by providing better training to skilled workers to complement research workers.
Author : Jung Hur
Publisher :
ISBN 13 :
Total Pages : 130 pages
Book Rating : 4.:/5 (89 download)
Download or read book Three Essays on Regional Trade Agreements in International Trade written by Jung Hur and published by . This book was released on 2001 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Mauricio Ramirez Grajeda
Publisher :
ISBN 13 :
Total Pages : 161 pages
Book Rating : 4.:/5 (775 download)
Download or read book Three Essays on Geographic Consequences of Trade Openness written by Mauricio Ramirez Grajeda and published by . This book was released on 2006 with total page 161 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This dissertation is divided into three chapters, which can be read separately. In chapter 2, I investigate the effects of trade openness on the size of the most important cities for 84 countries after controlling for political, geographic and economic factors. I find that the impact is negative on main cities and positive on secondary cities. In chapter 3, I test the bell-shaped relationship between industrial gap and trade costs by partially following Head and Mayer's (2003) empirical strategy, who confront estimates of trade openness and the range in which agglomeration theoretically takes place. The main result is that concentration of both employment and production may arise if a pair of countries is involved in a process of trade liberalization. In chapter 4, I assess the impact of international trade openness on urban structure in the presence of taste heterogeneity and amenities. I find that taste heterogeneity implies that city size is equal or below the levels featured by Fujita et al. (1999). Furthermore, if amenity differentials exist regardless of trade openness, then a unique equilibrium can be reached.
Author : Sihwan Yang
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (138 download)
Download or read book Three Essays on International Economics written by Sihwan Yang and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the role of invoicing currency and input-output (I-O) linkages between countries in the global economy. The way in which countries trade intermediate goods can serve as a transmission channel for propagating shocks, and in a sticky price environment, the currency used for bilateral trade transactions can have significant implications for exchange rate pass-through. The first chapter proposes a two-country static model in which countries trade final and intermediate goods with an exogenous invoicing currency. Through the lens of the model, an analytical framework is provided for how exogenous shocks affect prices, quantities, and global trade. The second chapter extends the baseline model to a quantitative multi-country model calibrated by data. Counterfactual analysis of the model suggests that expenditure switching in the calibrated model is muted by half compared to a model with full dollar invoicing. The last chapter constructs a multi-country, multi-sector model to analyze the impact of sanctions on Russian exports on global economy. Simulation results suggest that import restrictions imposed by Western countries on Russian energy exports can have varying effects on different countries. When Russia can redirect its exports to other countries under sanctions, export redirection benefits Russia's welfare, while most other countries experience a decline in welfareChapter 1 explores the role of input-output (I-O) linkages and invoicing currency in global trade. To this end, a theoretical model is proposed in which two countries, Home and the Rest of the World (ROW), engage in a bilateral trade transaction, with the United States (US) acting as the dominant currency country. The primary objective of the model is to analyze the impact of dollar appreciation resulting from contractionary US monetary policy on global trade, taking into account exogenous invoicing currency and I-O linkages. The baseline model suggests that the global trade response is dependent on the interaction between dollar invoicing shares and foreign intermediate input shares. Chapter 2 studies whether world trade is close to local currency pricing (LCP) or dominant currency pricing (DCP) using a quantitative model with calibrations. Recent literature has focused on the empirical fact that global trade is dominantly invoiced in a few currencies such as the US dollar or Euro. While the majority of international trade is intermediate goods trade, there is a conflicting opinion that questions if DCP prices at the border are allocative since final goods prices are sticky in local currency (LCP). Simulation results suggest that the global trade response to dollar appreciation of the calibrated model lies between the responses under a full DCP and full LCP model. Chapter 3 examines the impact of economic sanctions on Russian exports and the subsequent trade and welfare responses of countries using a calibrated model introduced by Baqaee and Farhi (2022). The results indicate that import restrictions imposed by Western countries on Russian energy exports can lead to negative welfare effects for these countries, particularly for EU nations heavily reliant on Russian energy imports. However, the impact on the overall world economy is quantitatively small, as Russia can redirect its exports to non-Western countries. Additionally, the analysis demonstrates that the welfare response of countries is influenced by the ability for Russian to redirect exports to another destination countries such as China, and trade elasticities, with less substitutability of goods across countries resulting in a more detrimental impact on Russia's welfare.
Author : Michael Klaus Jetter
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (959 download)
Download or read book Three Essays in Economics written by Michael Klaus Jetter and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation consist of three essays analyzing the results of decisions made by workers, both on the microeconomic as well as the macroeconomic level. My first essay, which is a coproduction with Wayne Grove and Andrew Hussey, investigates the determinants of the gender wage gap. Specifically, the paper points out that noncognitive skills, preferences for life and career, but also preferences for work ethics and work environment, are able to account for as much as one third of the explained portion of the gender wage gap.My second essay, which is co-authored with Dr. Pinaki Bose, provides a possible explanation why some tax amnesties are successful in terms of revenue collection and participation rates (for example Ireland, Colombia, India twice, and France), whereas others are not. In particular, I am modeling the taxpayer's decision whether to accept an amnesty offer from the tax authority and derive conditions under which she will be inclined to do so. The results show that if economic conditions change substantially, for example by a trade liberalization of the domestic country, a perfectly rational agent will find it optimal to accept a tax amnesty. In my third essay, I am developing a theoretical model identifying the relationship between the volatility of private sector wages and growth. The model suggests two distinct channels in which wage volatility affects growth: a positive direct way (working through precautionary savings) and a negative indirect way (working through the mediating role of government size). Applying a 3SLS approach to a panel of 19 countries, my empirical analysis provides strong evidence for the existence of both effects. Thus, this paper establishes wage volatility as a growth determinant and explains why previous growth analyses on other sorts of volatility could not reach a consensus, as the indirect effect was not recognized.
Author : Aleksandra Babii
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (12 download)
Download or read book Three Essays in International Economics written by Aleksandra Babii and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis consists of three independent chapters on international macroeconomics. Little is known about the economic source of common variation in nominal exchange rates. The first chapter examines how international trade links nominal exchange rates. First, I document that two countries that trade more intensively with each other have more correlated exchange rates against the U.S dollar. Second, I develop a general equilibrium multi-country model, where a shock to a single country propagates to the exchange rates of its trading partners and serves as a source of common variation. In the baseline three-country model, I show that the sign and the strength of correlation between exchange rates depend on the elasticities of trade balances of countries with respect to both exchange rates. As a result, the model's prediction about the relationship between bilateral trade intensity and exchange rates correlation depends on the currency in which international prices are set. Lastly, an augmented model is calibrated to twelve countries to quantitatively assess the importance of trade linkages. I find that trade linkages alone, with uncorrelated shocks across countries, account for 50% of the empirical trade-exchange-rates-correlation slope coefficient. The second chapter, written in collaboration with Hussein Bidawi, shows that exchange rates of a large and heterogeneous set of countries are connected to individual commodity prices. This overturns the exchange rate disconnect puzzle: the empirical fact that nominal exchange rates are not linked to their fundamentals. Importantly, the connection between exchange rates and commodity prices is independent of the country's reliance on export of commodities. Strikingly then, the observed link is not restricted to commodity currencies. A novel empirical regularity about the link between exchange rates and commodity prices is uncovered. In particular, the strength of connectedness exhibits important time variation: commodity prices and exchange rates are more linked in times of high uncertainty on financial markets as measured by VIX. Our findings emphasize the need to study exchange rates and commodity prices beyond the traditional trade framework. In the third chapter in collaboration with Thomas Helbling, we study the effect of commodity price variation on the Australian economy. The Australian economy depends significantly on its commodity-exporting activity. The mining boom and bust over the past decade or so have had a large impact on the economy even though the mining sector is relatively small in terms of value added and employment. This paper explores the amplification of mining shocks over the input-output linkages. In particular, we focus on industries that provide inputs to the mining sector. We analyze the effect of Australia's key commodities prices between 2006 and 2016 exploiting cross-industry variation in sales exposure to the mining sector and quantify the overall output and employment effects of these shocks. We find that a one-standard-deviation decline in individual prices for some commodities decreases total employment by 0.75-0.82% and real output by 0.8%.
Author : Rik Chakraborti
Publisher :
ISBN 13 : 9780355855890
Total Pages : 168 pages
Book Rating : 4.8/5 (558 download)
Download or read book Three Essays on Emerging Issues in Economics written by Rik Chakraborti and published by . This book was released on 2017 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contributes three essays to emerging topics in Economics. The first essay examines the role of institutional weaknesses--specifically, weakly defined or enforced property rights--in keeping poor countries heavily dependent on their natural resource base through trade. The essay shows, theoretically and empirically, that a country with weaker property rights will inefficiently under-price its resource base, and export more resource-based goods even to countries that have equally weak property rights. The second essay explores how a firm’s overconfidence about catastrophic environmental risks influences the optimal contract that a regulator writes to reduce the risk at minimal cost. The results show that overconfidence can matter in two important ways: If the firm overestimates the impact of precautionary effort in reducing risk, the optimal contract attains more environmental protection at lower social costs. If the firm, however, underestimates the impact of precautionary effort, the contract is less efficient. Environmental protection is costlier. Moreover, in this case, ignoring the firm’s overconfidence can lead to excessive risk-taking. The third essay explores the interactive economic dynamics of attention and habit formation in the presence of time-inconsistent preferences in mitigating self-control issues. Recent studies in the psychological literature find that self-control is less about resisting unhealthy temptations, and more about breaking unhealthy habits and replacing them with healthy ones. The essay develops a model of habit formation consistent with this observation. A healthy habit in any given domain, in the model, takes a period of sustained attention to form. But, once established, these healthy habits allow an individual to free up scarce \attentional resources," which can then be used to establish healthy habits in other domains. The model has interesting policy implications. It suggests, among other things, that information campaigns or other policies aimed at preventing unhealthy behaviors are best targeted at individuals whose habits are in flux: freshman college students, for example, or people who have recently moved or changed jobs. It also suggests that such policies might have counter-intentional consequences: taxing cigarettes might lead to wide-spread obesity through the channel of cross-domain self-control failures.
Author : Martin Shubik
Publisher : MIT Press
ISBN 13 : 9780262693110
Total Pages : 472 pages
Book Rating : 4.6/5 (931 download)
Download or read book The Theory of Money and Financial Institutions written by Martin Shubik and published by MIT Press. This book was released on 1999 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: This first volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores a one-period approach to economic exchange with money, debt, and bankruptcy. This is the first volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"--a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy. Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.
Author :
Publisher :
ISBN 13 :
Total Pages : 388 pages
Book Rating : 4.:/5 (318 download)
Download or read book Journal of Economic Literature written by and published by . This book was released on 2006-12 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Wei Fan
Publisher :
ISBN 13 :
Total Pages : 312 pages
Book Rating : 4.3/5 (91 download)
Download or read book Three Essays on Economic Geography written by Wei Fan and published by . This book was released on 2001 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Dalia Sami Hakura
Publisher :
ISBN 13 :
Total Pages : 436 pages
Book Rating : 4.3/5 (91 download)
Download or read book Three Essays on the Effects of International Trade written by Dalia Sami Hakura and published by . This book was released on 1995 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt:
