The interplay of international trade,economic growth and income convergence: a brief intellectual history of recent developments

The literature on the interplay of international trade, economic growth, and income convergence across economies has proliferated in the past few decades. The present essay reviews the theoretical advancements and empirical findings in this literature. The focus will be on recent developments with a few glances at the past. The essay also describes new findings and insights into the role of international trade in global income distribution. Ideas for further research are offered throughout the essay.     

Theorems on the core of an economy with infinitely many commodities and consumers

It is known that the classical theorems of Grodal [Grodal, B., 1972. A second remark on the core of an atomless economy. Econometrica 40, 581–583] and Schmeidler [Schmeidler, D., 1972. A remark on the core of an atomless economy. Econometrica 40, 579–580] on the veto power of small coalitions in finite dimensional, atomless economies can be extended (with some minor modifications) to include the case of countably many commodities. This paper presents a further extension of these results to include the case of uncountably many commodities. We also extend Vind’s [Vind, K., 1972. A third remark on the core of an atomless economy. Econometrica 40, 585–586] classical theorem on the veto power of big coalitions in finite dimensional, atomless economies to include the case of an arbitrary number of commodities. In another result, we show that in the coalitional economy defined by an atomless individualistic model, core–Walras equivalence holds even if the commodity space is non-separable. The above-mentioned results are also valid for a differential information economy with a finite state space. We also extend Kannai’s [Kannai, Y., 1970. Continuity properties of the core of a market. Econometrica 38, 791–815] theorem on the continuity of the core of a finite dimensional, large economy to include the case of an arbitrary number of commodities. All of our results are applications of a lemma, that we prove here, about the set of aggregate alternatives available to a coalition. Throughout the paper, the commodity space is assumed to be an ordered Banach space which has an interior point in its positive cone.     

Stochastic programming approach to re-designing a warehouse network under uncertainty

The warehouse network re-design problem includes integrating or eliminating existing warehouses and establishing new sites. In this paper, we incorporate variability in product demand and operational costs with a two-stage stochastic modeling approach. We use the Sample Average Approximation (SAA) approach together with Benders decomposition to provide a solution method. Our results indicate not only that the stochastic solution is an improvement over the deterministic solution but also that the solutions’ differences grow with increasing uncertainty. The stochastic solutions show more robustness than the deterministic solutions. The computational results show that a change in the type of probability distribution of the stochastic parameters does not significantly affect the value of the stochastic solutions.     

Cost-effectiveness analysis of tissue plasminogen activator in acute ischemic stroke in Iran

Aims: Tissue plasminogen activator (tPA) is used to treat acute ischemic stroke up to 4.5?h after symptom onset. Its cost-effectiveness in developing countries is not specified yet. This study aimed to study cost-effectiveness of tPA in Iran.

Methods: This is a cost-effectiveness analysis from the perspective of the third party payer to compare IV tPA with no tPA of ischemic stroke. A Markov model with a lifetime horizon was used to analyze the costs and outcomes. Cost data were extracted from the 94 patients admitted in two hospitals in Iran. All costs were calculated based on US dollars in 2016. Quality-adjusted life years (QALY) were extracted from previously published literature. Cost-effectiveness was determined by calculating ICER by TreeAge Pro 2011 software.

Results: Lifetime costs of no tPA strategy were higher than tPA ($10,718 in the no tPA group compared with $8,796 in the tPA group). The tPA arm gained 0.20 QALY compared with no tPA. ICER was $8,471 per QALY. ICER value suggests that tPA is cost-effective compared with no tPA.

Limitations: The limitations of the present study are the reliance on calculated QALY value of other countries and difficulty in accessing patients treated with tPA.

Conclusions: The balance of hospitalization and rehabilitation costs and QALYs support the conclusion that treatment with intravenous tPA in the 4.5-h time window is cost-effective from the perspectives of the third party payer and inclusion of tPA in the insurance benefit package being reasonable.     

Equitable nature of core allocations in atomless economies

The purpose of this paper is to prove the equal treatment property for the -core allocations of an atomless economy without any condition on the data of economy. This result prompts the same property for the core allocations. Received: 7 March 1995 / Accepted: 3 March 1997     

How can Eastern Europe help American manufacturers?

The end of the Soviet Union and the creation of the Commonwealth of Independent States will definitely increase Western involvement in the former East Bloc countries. Recent emphasis has been placed on either developing Eastern markets or using inexpensive human capital to manufacture goods to be sold in the West. A third option does exist: the use of Eastern knowledge and technology in the West. Application of this knowledge and technology, currently not feasible in the former East Bloc because of a deficient infrastructure and lack of incentives, could be practical in the fertile environment of the West. Western firms are advised to catch up with their Japanese competitors in taking advantage of the low-risk opportunities that the break up of the Soviet Union has made available. © 1993 John Wiley & Sons, Inc.     

The impact of the acreage allotment program on rice farming

This paper designs an acreage response model under the acreage allotment farm program incorporation a policy-inducing variable. The single-equation regression model for each rice-producing state is estimated by the ordinary least squares mulitiple regression procedure. The estimated parameter shows a significant direct relationship between the rice acreage planted and plicy-inducing price in all the rice-growing states. The estimated short-run elasticities for Arkansas, California, Louisiana, Mississippi, and Texas were 0.72, 0.59, 0.67, 0.66, and 0.81 respectively. The heterogeneity in the magnitude of the elasticities during the acreate allotment period suggests considering a rice program formulation in response to each state's variability in physical restraints, availability of irrigation water, average yields, and return over cost, thereby providing risk management incentives to rice growers to respond positively to the farm program.     

The impact of monetary and tax policy on income inequality in Japan

This paper assesses the effects of the most recent monetary policy behaviour of the Bank of Japan (in particular, zero interest rate policy and negative interest rate policy) and Japanese tax policy on income inequality in this country during the period of 2002Q1 to 2017Q3. The vector error correction model (VECM) that develops in this research shows that increase in money stock (m1) through Quantitative Easing (QE) and Quantitative and Qualitative Easing (QQE) policies of the BOJ significantly increases the income inequality. On the contrary, Japanese tax policy was effective in reducing the income inequality. Variance decomposition results show that increasing of income inequality by monetary policy is larger when comparing to decreasing effects of tax policy on income inequality. Cointegration and VECM results show that monetary policy has both short-run and long-run impacts but for tax policy paper could not find any significant short-run impact on income inequality. In addition, paper found that technological progress only in long-run can reduce the income inequality by increasing the marginal productivity of labour with positive impacts on employment and wages.