International Trade And Macroeconomic Dynamics With Heterogeneous Firms

Author : Fabio Ghironi,Marc J. Melitz
Publisher : Unknown
Page : 68 pages
File Size : 51,5 Mb
Release : 2004
Category : Business cycles
ISBN : UCSD:31822033210733

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International Trade and Macroeconomic Dynamics with Heterogeneous Firms by Fabio Ghironi,Marc J. Melitz Pdf

"We develop a stochastic, general equilibrium, two-country model of trade and macroeconomic dynamics. Productivity differs across individual, monopolistically competitive firms in each country. Firms face a sunk entry cost in the domestic market and both fixed and per-unit export costs. Only relatively more productive firms export. Exogenous shocks to aggregate productivity and entry or trade costs induce firms to enter and exit both their domestic and export markets, thus altering the composition of consumption baskets across countries over time. In a world of flexible prices, our model generates endogenously persistent deviations from PPP that would not exist absent our microeconomic structure with heterogeneous firms. It provides an endogenous, microfounded explanation for a Harrod-Balassa-Samuelson effect in response to aggregate productivity differentials and deregulation. Finally, the model successfully matches several moments of U.S. and international business cycles"--NBER website

Author : Julian Emami Namini
Publisher : Springer Science & Business Media
Page : 168 pages
File Size : 45,7 Mb
Release : 2006-10-28
Category : Business & Economics
ISBN : 9783540327196

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International Trade and Multinational Activity by Julian Emami Namini Pdf

This study investigates the dynamic welfare effects of exposure to trade in a new trade model, which is extended by firm heterogeneity. It is analyzed under which conditions exposure to trade with firm heterogeneity increases or decreases steady state welfare of a country. It uses a new trade model to explore which country-specific conditions give rise to horizontal or vertical multinational activity. Finally, it combines the Heckscher-Ohlin model and a new trade model with horizontal multinational firms.

Author : Anonim
Publisher : Unknown
Page : 128 pages
File Size : 53,6 Mb
Release : 2003
Category : Electronic
ISBN : OCLC:834441286

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Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics by Anonim Pdf

Author : Andrew B. Bernard,J. Bradford Jensen,Peter K. Schott
Publisher : Unknown
Page : 50 pages
File Size : 49,8 Mb
Release : 2003
Category : Commerce
ISBN : UCSD:31822032505240

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Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics by Andrew B. Bernard,J. Bradford Jensen,Peter K. Schott Pdf

This paper examines the response of industries and firms to changes in trade costs. Several new firm-level models of international trade with heterogeneous firms predict that industry productivity will rise as trade costs fall due to the reallocation of activity across plants within an industry. Using disaggregated U.S. import data, we create a new measure of trade costs over time and industries. As the models predict, productivity growth is faster in industries with falling trade costs. We also find evidence supporting the major hypotheses of the heterogenous-firm models. Plants in industries with falling trade costs are more likely to die or become exporters. Existing exporters increase their shipments abroad. The results do not apply equally across all sectors but are strongest for industries most likely to be producing horizontally-differentiated tradeable goods.

Author : Edward J. Balistreri,Thomas F. Rutherford,Hillberry, Russell H.
Publisher : Unknown
Page : 128 pages
File Size : 42,5 Mb
Release : 2008
Category : Electronic
ISBN : OCLC:637673118

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Structural Estimation and Solution of International Trade Models with Heterogeneous Firms by Edward J. Balistreri,Thomas F. Rutherford,Hillberry, Russell H. Pdf

Author : Andrew B. Bernard,Stephen Redding,Peter K. Schott
Publisher : Unknown
Page : 76 pages
File Size : 48,5 Mb
Release : 2004
Category : Diversification in industry
ISBN : UCSD:31822033211376

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Comparative Advantage and Heterogeneous Firms by Andrew B. Bernard,Stephen Redding,Peter K. Schott Pdf

This paper presents a model of international trade that features heterogeneous firms, relative endowment differences across countries, and consumer taste for variety. The paper demonstrates that firm reactions to trade liberalization generate endogenous Ricardian productivity responses at the industry level that magnify countries' comparative advantage. Focusing on the wide range of firm-level reactions to falling trade costs, the model also shows that, as trade costs fall, firms in comparative advantage industries are more likely to export, that relative firm size and the relative number of firms increases more in comparative advantage industries and that job turnover is higher in comparative advantage industries than in comparative disadvantage industries.

Author : Jaime Marquez
Publisher : Springer Science & Business Media
Page : 147 pages
File Size : 43,7 Mb
Release : 2013-03-14
Category : Business & Economics
ISBN : 9781475735369

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Estimating Trade Elasticities by Jaime Marquez Pdf

One cannot exaggerate the importance of estimating how international trade responds to changes in income and prices. But there is a tension between whether one should use models that fit the data but that contradict certain aspects of the underlying theory or models that fit the theory but contradict certain aspects of the data. The essays in Estimating Trade Elasticities book offer one practical approach to deal with this tension. The analysis starts with the practical implications of optimising behaviour for estimation and it follows with a re-examination of the puzzling income elasticity for US imports that three decades of studies have not resolved. The analysis then turns to the study of the role of income and prices in determining the expansion in Asian trade, a study largely neglected in fifty years of research. With the new estimates of trade elasticities, the book examines how they assist in restoring the consistency between elasticity estimates and the world trade identity.

Author : Marco de Pinto
Publisher : Springer Science & Business Media
Page : 121 pages
File Size : 43,7 Mb
Release : 2012-12-14
Category : Business & Economics
ISBN : 9783642332364

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International Trade and Unemployment by Marco de Pinto Pdf

Economic theory and empirical research confirm that the rising international integration caused an increase in aggregate income at least for the industrialized countries, although trade liberalization is no Pareto improvement. In the empirical literature, there is a consensus that the international integration implies a destruction of low-skilled job vacancies and an increase in income, while the conclusions are mixed concerning the implication for the overall unemployment rate. This book seeks to find theoretical explanations to these empirical regularities. The book poses three questions: What are the implications of trade liberalization for the labor market in the presence of trade unions if we account for both firm and worker heterogeneity? What are the implications of a redistribution policy if the government chooses unemployment benefits to partially compensate the losers of trade liberalization?, and what is the optimal redistribution scheme for trade gains if the government explicitly takes into account the consequences for the income distribution? This book presents a rigorous theoretical analysis to answer the questions posed. Beside the well-known firm-selection effect on goods markets caused by trade liberalization, a selection process on the labor market -the worker-selection effect - is presented. The book also argues that if welfare is measured in the traditional manner, i.e. income per capita, compensating the loser of trade liberalization by paying unemployment benefits decreases welfare, but the intensity of the reduction differs with respect to the chosen funding of the unemployment benefits. Another significant contribution of this book is that if the objective function of the government, i.e. the modified welfare function, includes both aggregate income and income inequality, the redistribution of trade gains can lead to an increase in welfare.​

Author : Gita Gopinath,Elhanan Helpman,Kenneth Rogoff
Publisher : Elsevier
Page : 773 pages
File Size : 40,5 Mb
Release : 2014-02-22
Category : Business & Economics
ISBN : 9780444543158

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Handbook of International Economics by Gita Gopinath,Elhanan Helpman,Kenneth Rogoff Pdf

What conclusions can be drawn from recent advances in international trade and international macroeconomics? New datasets, theoretical models, and empirical studies have resulted in fresh questions about the world trade and payment system. These chapters--six on trade and six on international macroeconomics--reveal the richness that researchers have uncovered in recent years. The chapters on foreign trade present, among other subjects, new integrated multisector analytical frameworks, the use of gravity equations for the estimation of trade flows, the role of domestic institutions in shaping comparative advantage, and international trade agreements. On international macroeconomics, chapters explore the relation between exchange rates and other macroeconomic variables; risk sharing, allocation of capital across countries, and current account dynamics; and sovereign debt and financial crises. By addressing new issues while enabling deeper and sharper analyses of old issues, this volume makes a significant contribution to our understanding of the global economy. Systematically illuminates and interprets recent developments in research on international trade and international macroeconomics Focuses on newly developing questions and opportunities for future research Presents multiple perspectives on ways to understand the global economy

Author : Anonim
Publisher : Springer
Page : 7493 pages
File Size : 40,8 Mb
Release : 2016-05-18
Category : Law
ISBN : 9781349588022

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The New Palgrave Dictionary of Economics by Anonim Pdf

The award-winning The New Palgrave Dictionary of Economics, 2nd edition is now available as a dynamic online resource. Consisting of over 1,900 articles written by leading figures in the field including Nobel prize winners, this is the definitive scholarly reference work for a new generation of economists. Regularly updated! This product is a subscription based product.

Author : Anonim
Publisher : Unknown
Page : 0 pages
File Size : 53,7 Mb
Release : 2008
Category : Electronic
ISBN : OCLC:637673118

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Structural Estimation and Solution of International Trade Models with Heterogeneous Firms by Anonim Pdf

Author : Somesh K. Mathur,Rahul Arora,Sarbjit Singh
Publisher : Springer
Page : 419 pages
File Size : 48,5 Mb
Release : 2017-11-28
Category : Business & Economics
ISBN : 9789811017599

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Theorizing International Trade by Somesh K. Mathur,Rahul Arora,Sarbjit Singh Pdf

This book discusses the developments in trade theories, including new-new trade models that account for firm level trade flows, trade growth accounting using inverse gravity models (including distortions in gravity models), the impact of trade liberalization under the aegis of regional and multilateral liberalization efforts of economies using partial and general equilibrium analysis, methodologies of constructing ad valorem equivalents of non-tariff barriers, volatility spillover effects of financial and exchange rate markets. The main purpose of the book is to guide researchers working in the area of international trade, especially focused on empirical analysis of trade policy issues by updating their knowledge on issues related to trade theory, empirical methods, and their applications. The book would prove useful for policy makers, academicians, and researchers.

Author : Robert Anderton,Geoff Kenny
Publisher : Cambridge University Press
Page : 299 pages
File Size : 45,6 Mb
Release : 2010-11-25
Category : Business & Economics
ISBN : 9781139493826

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Macroeconomic Performance in a Globalising Economy by Robert Anderton,Geoff Kenny Pdf

The process of globalisation has been ongoing for centuries, but few would doubt that it has accelerated and intensified in recent decades. This acceleration is evidenced as much by the strong synchronicity in the rapid transmission of financial crises starting in late 2007 as it is by the decade of almost unprecedented growth in international trade and financial market liberalisation that preceded it. This book shows how the international economy has become more connected via increased production, trade, capital flows and financial linkages. Using a variety of methodologies, including both panel econometrics and DSGE modelling, a team of experts from academia, central banks and the IMF examine how this increased globalisation has affected competitiveness, productivity, inflation and the labour market. This timely contribution to the globalisation literature provides a longer-term perspective while also evaluating some of the potential implications for policy makers, particularly from a European perspective.

Author : Matteo Cacciatore,Mr.Romain A Duval,Giuseppe Fiori,Mr.Fabio Ghironi
Publisher : International Monetary Fund
Page : 65 pages
File Size : 55,9 Mb
Release : 2017-10-03
Category : Business & Economics
ISBN : 9781484320679

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Market Reforms at the Zero Lower Bound by Matteo Cacciatore,Mr.Romain A Duval,Giuseppe Fiori,Mr.Fabio Ghironi Pdf

This paper studies the impact of product and labor market reforms when the economy faces major slack and a binding constraint on monetary policy easing. such as the zero lower bound. To this end, we build a two-country model with endogenous producer entry, labor market frictions, and nominal rigidities. We find that while the effect of market reforms depends on the cyclical conditions under which they are implemented, the zero lower bound itself does not appear to matter. In fact, when carried out in a recession, the impact of reforms is typically stronger when the zero lower bound is binding. The reason is that reforms are inflationary in our structural model (or they have no noticeable deflationary effects). Thus, contrary to the implications of reduced-form modeling of product and labor market reforms as exogenous reductions in price and wage markups, our analysis shows that there is no simple across-the-board relationship between market reforms and the behavior of real marginal costs. This significantly alters the consequences of the zero (or any effective) lower bound on policy rates.

Author : Kristian L. Hagen
Publisher : Nova Publishers
Page : 278 pages
File Size : 52,7 Mb
Release : 2008
Category : Business & Economics
ISBN : 1600217567

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International Finance and Financial Services by Kristian L. Hagen Pdf

International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, and how these affect international trade. Financial services is a term used to refer to the services provided by the finance industry. Financial services is also the term used to describe organisations that deal with the management of money and includes merchant banks, credit card companies, consumer finance companies, government sponsored enterprises, and stock brokerages. Financial services is the largest industry (or industry category) in the world, in terms of earnings. This book presents important analyses in these interaction fields.