Discrete plant-location decisions in an applied general-equilibrium model of trade liberalization

Discrete Plant-Location Decisions in an Applied General-Equilibrium Model of Trade Liberalization. - This paper makes a first step toward a more realistic approach to increasing-returns trade models in which firms face discrete choices about the numbers and locations of their plants. The model is applied to the North American auto industry in the NAFTA context. Results include: (1) production appears to be excessively geographically diversified initially; (2) autos are produced in fewer locations as trade barriers are lowered; (3) a “non-monotonicity“ case is produced in which a plant is first closed and then reopened as trade barriers are progressively lowered; (4) an example of the misleading nature of marginalist analysis is presented in which plants in Canada and Mexico increase production when locations are fixed but close down when locations are endogenous and optimized.     

Food literacy competencies: A conceptual framework for youth transitioning to adulthood

Objective : The modern foodscape has changed dramatically in recent decades in terms of where, what, how and with whom we eat. This has been facilitated by a transition from traditional, healthy and basic foods prepared in the home to ultraprocessed, unhealthy foods requiring little planning and preparation prior to consuming. Consequently, many youth lack the food literacy (knowledge, skills and critical perspectives) necessary to be well and minimize their risk of obesity and chronic diseases, in the context of a complex food system. The specific dimensions of these knowledge, skills and dispositions, however, are unknown. This study identified critical food literacy competencies required by youth as they transition to independent adulthood. Design : This study employed a Delphi methodology to achieve consensus statements on critical food literacy competencies within a framework encompassing cognitive, psychomotor and affective dimensions. Participants : A panel of 41 experts including dietitians, teachers and college/university students participated in in‐depth interviews. Analysis : Results were thematically analysed and incorporated into two subsequent surveys completed by panel members. Rater agreement was set at 75% agreeing/strongly agreeing with survey items. A panel subgroup further delineated results into competency statements. Results : Within the themes of “confidence and empowerment,” “joy and meaning” and “sustainable and equitable food systems,” 16 broad competency areas, and 59 specific competencies were identified. These were assembled into a Food Literacy Framework. Conclusion : Results can be used to support food and nutrition education in community settings as well as the formal school system, and to advocate for resources to support food literacy education programmes.     

Trade Policy Options for Chile: The Importance of Market Access

This article uses a multisector, multicountry, computable generalequilibrium model to examine Chile's strategy of "additive regionalism"—negotiatingbilateral free trade agreements with all of its significanttrading partners. Taking Chile's regional arrangements bilaterally,only its agreements with Northern partners provide sufficientmarket access to overcome trade diversion costs. Due to preferentialmarket access, however, additive regionalism is likely to provideChile with gains that are many multiples of the static welfaregains from unilateral free trade. At least one partner countryloses from each of the regional agreements considered, and excludedcountries as a group always lose. Gains to the world from globalfree trade are estimated to be vastly larger than gains fromany of the regional arrangements.     

DEVELOPING A CONCEPTUAL FRAMEWORK FOR CENTRAL GOVERNMENT FINANCIAL REPORTING: INTERMEDIATE USERS AND INDIRECT CONTROL

This paper argues that the search for external users of public sector financial reports, and for decisions for which users might plausibly need information that could feasibly be provided in general purpose financial statements, has failed empirically and theoretically. The implications for the construction of a conceptual framework for public sector financial reporting are examined. It is suggested that'intermediate'users operating in an environment of'indirect control'might form an appropriate basis for a conceptual framework. Some tentative observations about such a framework are made and its application in accounting for central government agencies is explored.     

CASH FLOW REPORTING AND DISTRIBUTIONAL ALLOCATIONS: A NOTE

This Note clarifies certain problems associated with the construction and interpretation of cash flow statements.     

A long term model of oil markets,economic growth and balance of payment constraints

This paper describes LTM, a long term model of oil markets, economic growth and balance of payments constraints. In this paper the model is used to investigate the role of the demand elasticity for oil in determining OPEC's profit-maximizing production profile. Our experiments reveal that in a model with intertemporal substitution and endogenous capital formation, gross revenue curves are fairy flat. Hence their economic optimum is virtually indeterminate. This suggests considerable leeway in OPEC's determination of pricing and production policies.This work has been supported by the U.S.-Mexico Project and the Center for Economic Policy Research at Stanford University as well as by the U.S. Department of Energy. Helpful suggestions have been received from Bagicha S. Minhas. The individual authors are solely responsible for the views expressed here.     

A Comparison of Federal Government Office Rents with Market Rents

This study examines Federal Government office leases using data from Texas and Oklahoma during the 1981–1991 time period. The lease indifference model presented here indicates that landlords may be willing to accept lower rents from government tenants due to reduced tenant risk, but that such discounts may be offset by other premiums implicit in the lease contract. The data collected for this study reveal that rents paid by the government are significantly higher than average market rents during this time period. A time-series, cross-sectional regression analysis of the spread between market rents and office rents to government tenants in nine metropolitan markets suggests that the difference is affected in part by expense pass-throughs, lease period, amount of space leased, and local market conditions.     

The Relationships Between Mortgage Rates and Capital-Market Rates Under Alternative Market Conditions

Mortgage interest rates have become more integrated with other capital-market interest rates over recent decades, apparently as a result of the deregulation of financial markets. The link is both imperfect and time-varying. Mortgage rates during some time periods appear to be sticky with respect to their adjustment to changes in capital-market rates. We examine the relationship between weekly conventional mortgage rates and the interest rates on treasury and corporate securities under differing market conditions. We draw three conclusions based on the analysis. First, deregulation changed the link between mortgage rates and riskless interest rates, which confirms the findings of Goebel and Ma (1993). Second, mortgage rates were cointegrated with risky interest rates even before deregulation. Third, the link between mortgage rates and the risky bond rate can be associated with the behavior of the risk premium in the bond rate. The observed relationship is consistent with the stickiness observed by Haney (1988) and causes a more pronounced stickiness when rates are falling than when they are rising.     

The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization

In this paper a computable general equilibrium model of the Russian economy is used to assess the impact of accession to the World Trade Organization (WTO), which encompasses improved market access, Russian tariff reduction, and reduction of barriers against multinational service providers. It is assumed that foreign direct investment in business services is necessary for multinationals to compete well with Russian business services providers, but cross‐border service provision is also present. The model incorporates productivity effects in both goods and services markets endogenously, through a Dixit–Stiglitz framework. It is estimated that Russia will gain about 7.2% of the value of Russian consumption in the medium term from WTO accession and up to 24% in the long run. It is also estimated that the largest gains to Russia will derive from liberalization of barriers against multinational service providers. Piecemeal and systematic sensitivity analysis shows that the results are robust.