scholarly journals International Trade with Indirect Additivity

2018 ◽  
Vol 10 (2) ◽  
pp. 1-57 ◽  
Author(s):  
Paolo Bertoletti ◽  
Federico Etro ◽  
Ina Simonovska
Keyword(s):  
Trade Liberalization ◽  
Monopolistic Competition ◽  
Heterogeneous Firms ◽  
Micro Data ◽  
Welfare Gains ◽  
Pricing To Market ◽  
Per Capita ◽  
The Difference ◽  
Pass Through ◽  
Ces Preferences

We develop a general equilibrium model of trade that features “indirectly additive” preferences and heterogeneous firms. Monopolistic competition generates markups that are increasing in firm productivity and in destination country per capita income, but independent from destination population, as documented empirically. The gains from trade liberalization are lower than in models based on CES preferences, and the difference is governed by the average pass-through. When we calibrate the model so as to match observed pricing-to-market in micro-data, it generates welfare gains that are substantially lower than those predicted by commonly employed frameworks. (JEL D11, D43, F12, L11)

scholarly journals The African Continental Free Trade Agreement

2019 ◽  
Vol 19 (124) ◽  
pp. 1 ◽  
Author(s):  
Lisandro Abrego ◽  
Maria Alejandra Amado ◽  
Tunc Gursoy ◽  
Garth Nicholls ◽  
Hector Perez-Saiz
Keyword(s):  
Trade Liberalization ◽  
Free Trade ◽  
Monopolistic Competition ◽  
Substantial Reduction ◽  
Free Trade Area ◽  
Trade Agreement ◽  
Perfect Competition ◽  
Welfare Gains ◽  
African Countries ◽  
Goods And Services

In March 2018, representatives of member countries of the African Union signed the African Continental Free Trade Area (AfCFTA) agreement. This agreement provides a framework for trade liberalization in goods and services and is expected to eventually cover all African countries. Using a multi-country, multi-sector general equilibrium model based on Costinot and Rodriguez-Clare (2014), we estimate the welfare effects of the AfCFTA for 45 countries in Africa. Three different model specifications—comprising both perfect competition and monopolistic competition—are used. Simulations include full elimination of import tariffs and partial but substantial reduction in non-tariff barriers (NTBs). Results reveal significant potential welfare gains from trade liberalization in Africa. As intra-regional import tariffs in the continent are already low, the bulk of these gains come from lowering NTBs. Overall gains for the continent are broadly similar under the three model specifications used, with considerable variation of potential welfare gains across countries in all model structures.

scholarly journals Monopolistic competition with generalized additively separable preferences

2020 ◽  
Author(s):  
Paolo Bertoletti ◽  
Federico Etro
Keyword(s):  
Monopolistic Competition ◽  
Social Planner ◽  
Selection Effects ◽  
Free Entry ◽  
Constant Elasticity ◽  
Pricing To Market ◽  
Constant Elasticity Of Substitution ◽  
Separable Preferences ◽  
Implicit Constant ◽  
Pass Through

Abstract We study monopolistic competition equilibria with free entry and social planner solutions under symmetric generalized additively separable preferences, which encompass known cases such as additive, homothetic, translog and other preferences. This setting can jointly produce competition and selection effects of entry, incomplete pass-through of cost changes and pricing to market. We discuss the inefficiencies of the market equilibrium under Gorman-Pollak preferences and show its optimality under implicit constant elasticity of substitution preferences. We propose a new specification of generalized translated power preferences, and discuss applications to trade and macroeconomics.

scholarly journals THE ACCUMULATION OF ELECTROLYTES

1932 ◽  
Vol 15 (6) ◽  
pp. 667-689 ◽  
Author(s):  
W. J. V. Osterhout ◽  
W. M. Stanley
Keyword(s):  
Steady State ◽  
Osmotic Pressure ◽  
Aqueous Phase ◽  
Thermodynamic Potential ◽  
Ph Value ◽  
Molecular Form ◽  
External Solution ◽  
Aqueous Layer ◽  
The Difference ◽  
Pass Through

Inasmuch as attempts to explain accumulation by the Donnan principle have failed in the case of Valonia, a hypothesis of the steady state has been formulated to explain what occurs. In order to see whether this hypothesis is in harmony with physico-chemical laws attempts have been made to imitate its chief features by means of a model. The model consists of a non-aqueous layer (representing the protoplasmic surface) placed between an alkaline aqueous phase (representing the external solution) and a more acid aqueous phase (representing the cell sap). The model reproduces most of the features of the hypothesis. Attention may be called to the following points. 1. The semipermeable surface is a continuous non-aqueous phase. 2. Potassium penetrates by combining with an acid HX in the non-aqueous layer to form KX which in turn reacts with an acid HA in the sap to form KA. Since KX is little dissociated in the non-aqueous layer potassium appears to pass through it chiefly in molecular form. 3. The internal composition depends on permeability, e.g., sodium penetrates less rapidly than potassium and in consequence potassium predominates over sodium in the "artificial sap." The order of penetration in the model is the same as in Valonia, i.e., K > Na > Ca > Mg, and Cl > SO4, but the quantitative resemblance is not close, e.g., the difference between potassium and sodium, and chloride and sulfate is much less in the model. 4. The formation of KA and NaA in the sap raises its osmotic pressure and water enters. 5. The concentration of potassium and sodium and the osmotic pressure become much greater inside than outside. For example, potassium may become 200 times as concentrated inside as outside. 6. No equilibrium occurs but a steady state is reached in which water and salt enter at the same rate so that the composition of the sap remains constant as its volume increases. 7. Since no equilibrium occurs there is a difference of thermodynamic potential between inside and outside. At the start the thermodynamic potential of KOH is much greater outside than inside. This difference gradually diminishes and in the steady state has about the same value as in Valonia. The difference in pH value between the internal and external solutions is also similar in both cases (about 2 pH units). 8. Accumulation does not depend on the presence of molecules or ions inside which are unable to pass out. One important feature of the hypothesis is not seen in the model: this is the exchange of HCO3 for Cl-. Experiments on this point are in progress.

scholarly journals Immigration from the CIS countries to Russia in the context of the economic crisis in the Russian Federation

2018 ◽  
Vol 9 (4) ◽  
pp. 677-694
Author(s):  
Agnieszka Piekutowska ◽  
Monika Fiedorczuk
Keyword(s):  
Economic Crisis ◽  
Russian Federation ◽  
Labour Force ◽  
Gdp Per Capita ◽  
Russian Economy ◽  
Foreign Labour ◽  
The Russian Federation ◽  
Per Capita ◽  
The Difference ◽  
Cis Countries

Research background: A series of changes towards the greater openness to the influx of foreign labour force made in recent years in the Russian Federation prompts for analysis of immigration to this country as adopted solutions in the field of the migration policy affect other regions of destination (e.g. EU). Liberalisation of access of migrants to the Russian labour market is a part of a wider problem: competition (on an international scale) for an influx of foreign labour force. In this context, it is worth examining how the crisis which affected the Russian economy influenced the scale of immigration to Russia from the main sending countries, i.e. the countries of the Commonwealth of Independent States (CIS). Purpose of the article: The aim of the article is to show the impact of the crisis which affected the Russian economy in recent years on the scale of immigration from the CIS countries to Russia. The main hypothesis is as follows: the factor explaining immigration from the CIS countries to Russia is the difference in the level of income measured by GDP per capita (PPP) between the sending state and the country of destination. Such studies have not been undertaken so far and, due to the role of factors inherent in the concept of post-imperial migration, it becomes relevant to examine whether the factors shaping migration (including the differences in the level of income) recognised in the neoclassical theory of migration are important in explaining the flows in this area. Methods: In order to check the relationship between immigration and the economic crisis in Russia, the analysis of correlation and regression was used. Findings & Value added: It has been shown that despite the decline in GDP in Russia, immigration from the CIS countries to Russia is not decreasing. Therefore, it is a dependence different from the assumptions of the neoclassical economy according to which the reduction of differences in the level of income between the sending state and the country of destination reduces the scale of international migrations. As it has been shown, the scale of migration to Russia may not be explained by the difference in the level of GDP per capita in all CIS countries and, inter alia, political factors, conflicts or naturalisation processes become more important in shaping the scale of migration to Russia.

scholarly journals Trade Liberalization and the Lead Role of Human Capital and Job Attributes in Wage Determination: The Case of Pakistan’s Labor Market

2009 ◽  
Vol 14 (1) ◽  
pp. 1-37 ◽  
Author(s):  
Bushra Yasmin
Keyword(s):  
Human Capital ◽  
Trade Liberalization ◽  
Wage Gap ◽  
Individual Characteristics ◽  
Wage Distribution ◽  
Wage Determination ◽  
Pay Gap ◽  
Job Attributes ◽  
The Difference

This study analyzes the role of human capital and job attributes, i.e., supply-side determinants, in determining wages in a period of trade liberalization. Using the Mincerian earning function and based on data from the Labor Force Surveys, we construct a model to estimate various wage determinants and compute the rates of return to different educational qualifications and relative occupational wage shares for the years 2005/06 and 1990/91. The estimated earning functions for 1990/91 and 2005/06 are compared to investigate whether individual characteristics—such as gender, job location, nature of job, educational qualifications, and different occupations—cause the wage gap to widen or contract under conditions of trade liberalization. The mean and quantile regression approach is used for estimation purposes. Our key findings postulate (i) an increasing gender pay gap, (ii) a higher wage premium to the highest educational qualification, and (iii) more or less stable relative wages for different occupations over time. In addition, wage dispersion across occupational groups appears more pronounced in 1990/91 than in 2005/06, implying a declining trend in the difference in wage distribution across occupations.

scholarly journals Trade, skill premium and the gender wage gap: Evidence from manufacturing industries

2021 ◽  
Author(s):  
Kore Marc Antoine Guei
Keyword(s):  
Labour Market ◽  
Trade Liberalization ◽  
Monopolistic Competition ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Skill Premium ◽  
Moderate Increase ◽  
Skill Levels ◽  
Unskilled Labour ◽  
The Impact

Abstract The paper assesses the impact of trade liberalization on the labour market by focusing on skill wage premium. The paper tests these effects by developing a monopolistic competition model with two factors of production characterized by their skill levels (skilled and unskilled labour). The paper finds that tariff’s level reductions cause a moderate increase in the wage gap. Thus, our analysis shows that a 10% decrease in tariffs is accompanied by a 16.1 % increase in the skill premium. Also, the same level of tariffs’ cut will on average increase the gender wage gap by 26.8%. The study implies that trade liberalization tends to benefit more workers in the skilled labour market compared to workers in the unskilled labour market.

scholarly journals The Empirical Evaluation of the Determinants of Industrial Manufacturing in the CEMAC Zone

2019 ◽  
Vol 10 (1) ◽  
pp. 72
Author(s):  
Louis Bernard Tchekoumi ◽  
Patrick Danel Nya
Keyword(s):  
Manufacturing Sector ◽  
Empirical Evaluation ◽  
Value Added ◽  
Business Climate ◽  
Geographic Proximity ◽  
Per Capita Gdp ◽  
Absolute Value ◽  
Industrial Manufacturing ◽  
Per Capita ◽  
The Difference

The aim of this article is to assess the determinants of industrial manufacturing in the CEMAC zone. To achieve this, we make use of a gravity model on a static panel with random effects, according to the methodology proposed by Hausman-Taylor. The results show that the population, value added of the manufacturing sector, colonial links and geographic proximity have significant impacts with the expected signs. On the other hand, the difference in absolute value of per capita GDP, the business climate, financial inflows as well as actual distance are the group variables that arise as constraints to export manufacturing.

scholarly journals Mass Transport of Gases across the Air–Water Interface: Implications for Aldehyde Emissions in the Uinta Basin, Utah, USA

Atmosphere ◽  
2020 ◽  
Vol 11 (10) ◽  
pp. 1057
Author(s):  
Marc L. Mansfield
Keyword(s):  
Mass Transport ◽  
Vapor Phase ◽  
Current Model ◽  
Molecular Forms ◽  
Water Interface ◽  
Uinta Basin ◽  
Transport Models ◽  
Air Water Interface ◽  
The Difference ◽  
Pass Through

When they dissolve in water, aldehydes become hydrated to gem-diols: R−COH+H2O↔RCH(OH)2. Such reactions can complicate air–water transport models. Because of a persistent belief that the gem-diols do not exist in the vapor phase, typical models do not allow them to pass through the air–water interface, but in fact, they do. Therefore, transport models that allow both molecular forms to exist in both phases and to pass through the interface are needed. Such a model is presented here as a generalization of Whitman’s two-film model. Since Whitman’s model has fallen into disuse, justification of its use is also given. There are hypothetical instances for which the flux predicted by the current model is significantly larger than the flux predicted when models forbid the diol form from passing through the interface. However, for formaldehyde and acetaldehyde, the difference is about 6% and 2%, respectively.

scholarly journals Wirkung einer Feiertagsbereinigung des Länderfinanzausgleichs – eine empirische Analyse des deutschen Finanzausgleichs

2009 ◽  
Vol 58 (2) ◽  
Author(s):  
Michael Broer
Keyword(s):  
Tax Revenue ◽  
Tax Rates ◽  
Fiscal Equalization ◽  
Ability To Pay ◽  
Tax Revenues ◽  
Empirische Analyse ◽  
Per Capita ◽  
The Difference ◽  
The Right ◽  
Fiscal Equalization System

AbstractIn the German system of fiscal equalization Länder (States) with tax revenue below the average get payments from the Lander above the average. The difference between the average and the own tax revenue per capita will be compensated up to 75 %. To prevent Länder from getting payments form other Länder by lowering their own tax rates and to get the right information about their ability to pay, the revenue of taxes with taxing autonomy is standardized. But Länder could also influence their tax revenues by the number of holidays, each Land decides on its own. A Land with many own holidays will get lower tax revenues and higher payments in the fiscal equalization system than the same Land with no extra holidays. To collect the real ability to pay of the Lander in the fiscal equalization system, it is necessary to eliminate the effect of the different number of holidays. This paper shows an approach to neutralize this effect and calculates its impact to the payments of each Land in the fiscal equalization system.

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