Competitive General Equilibrium with Finite Change and Theory of Policy Making

We visit the non‐equivalence of tariff and quota in higher dimensional finite change trade models when goods outnumber factors of production. Under competitive conditions, exogenous shocks (e.g., exposure to international trade) support the production of only a subset of commodities. If we try to protect some of the vanishing goods, tariff and quota will have different results when a tariff turns out to be a more restrictive policy than a quota, contrary to the conventional wisdom.     

International oligopoly,barriers to outsourcing and domestic employment

In this paper we analyze the impact of barriers to outsourcing on domestic employment in an oligopolistic context. We show that although an outsourcing tax makes domestic labour cheaper, its employment effect is ambiguous due to strategic considerations. Analyzing international policy interdependence, we also show that, although a unilateral tax (subsidy) by a country must raise its domestic employment, this may be counterproductive in a Nash policy equilibrium. Finally, both a credit crisis and increased product differentiation tend to worsen the employment effects of an outsourcing tax. Our central findings are robust to both Bertrand and Cournot modes of competition.     

European Integration and Manufactures Import Demand: An Empirical Investigation of Ten European Countries

This paper studies import demand in ten European countries over the period 1970–95, and our objective is to investigate whether the process of European integration has affected imports. We provide evidence for parametric change in traditional import demand equations, suggesting that important variables or structural factors are missing from the long-run equations. We present equations based on new trade theory, where effects of technology and foreign direct investment are present. Once we include these there is little evidence that the creation of the Single Market has directly increased aggregated imports in European countries.     

Uncertainty, arbitrage and intra–industry trade

When firms in the same industry located in different regions or countries experience shocks to production costs in their respective industries that are imperfectly correlated, arbitrage opportunities automatically lead to trade. Trade can either stabilize or destabilize the price faced by producers in a given country. Producers' surplus is affected, owing to the 'variance–covariance' effect, while consumers' surplus is more directly affected through the variance of the product price. We examine how consumers' surplus, producers' surplus, and social welfare are affected when the regions switch from autarky to free trade in the presence of industry and region–specific cost shocks. JEL Classification: F10, D80
Incertitude, arbitrage et commerce intra–industrie. Quand les entreprises d'une même industrie localisées dans diverses régions ou différents pays font face à des chocs, qui ne sont pas parfaitement co–reliés, dans leurs coûts de production, les possibilités d'arbitrage entraînent automatiquement un accroissement du commerce. Ce commerce inter–régional ou international peut soit stabiliser ou déstabiliser les prix auxquels les producteurs font face dans un pays donné. Le surplus aux producteurs est directement affecté via l'effet de «variance–covariance>>, alors que le surplus aux consommateurs est plus directement affecté via la variance du prix du produit. Ce mémoire examine comment le surplus aux producteurs, le surplus aux consommateurs, et le niveau de bien–être social sont affectés quand les régions passent de l'autarcie au libre échange dans le cas où existent des chocs dans les coûts qui sont spécifiques à l'industrie et à la région.     

Behavioral dimensions of channels of distribution: Review and synthesis

This paper reviews and synthesizes the past research in the area of behavioral dimensions of channels of distribution. The authors explore the focal points of works on bargaining, conflict, cooperation, power, performance, member roles, member satisfaction and political economy. Suggestions for future research are supplied.