Social Efficiency of Entry in an Open Economy

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Tien-Der Han ◽  
M. Emranul Haque ◽  
Arijit Mukherjee
Keyword(s):  
Open Economy ◽  
Foreign Firms ◽  
Foreign Competition ◽  
Social Efficiency ◽  
Market Structures ◽  
Foreign Countries ◽  
Cost Asymmetry ◽  
Domestic Policies ◽  
Insufficient Entry

Abstract We show that cost asymmetry between the domestic and foreign firms is not necessary for the occurrence of insufficient entry in the domestic country. This result provides a rationale for pro-competitive domestic policies even in the absence of cost asymmetries among the domestic and foreign firms. However, if significant demand comes from foreign countries, and the market structures are determined endogenously in the domestic and foreign countries, domestic-entry in an open economy might not be insufficient, implying that foreign competition might not reduce the importance of anti-competitive domestic policies.

On the First-Round Effects of International Food Price Shocks

2018 ◽  
Author(s):  
Rafael Portillo ◽  
Luis-Felipe Zanna
Keyword(s):  
Developing Countries ◽  
Open Economy ◽  
Small Open Economy ◽  
Food Price ◽  
Relative Price ◽  
Asset Market ◽  
Price Shocks ◽  
Market Structures ◽  
Model Features ◽  
Food Share

The chapter presents a small open-economy model to study the first-round effects of international food-price shocks in developing countries. First-round shocks are defined as changes in headline inflation that, holding core inflation constant, help implement relative price adjustments. The model features three goods (food, a generic traded good, and a non-traded good), varying degrees of tradability of the food basket, and alternative international asset market structures. First-round effects depend crucially on the asset market structure. Under complete markets, inter-temporal substitution prevails, making the inflationary impact of international food price shocks proportional to the food share in consumption, which in developing countries is typically large. Under financial autarky, the income channel is dominant, and first-round effects are instead proportional to the country’s food trade balance, which is typically small. The results cast some doubt on the view that international food price shocks inherently have large inflationary effects in developing countries.

Managerial Delegation, Cost Asymmetry and Social Efficiency of Entry

2013 ◽  
Vol 90 (288) ◽  
pp. 90-97 ◽  
Author(s):  
Arijit Mukherjee ◽  
Yingyi Tsai
Keyword(s):  
Social Efficiency ◽  
Cost Asymmetry ◽  
Managerial Delegation

ABOUT A BALANCED HOLISTIC AND ACTUALLY A POSSIBLE MODEL OF MACROECONOMIC SYSTEM

2016 ◽  
Vol 9 (1) ◽  
pp. 62-68
Author(s):  
Владимиров ◽  
S. Vladimirov
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Open Economy ◽  
Carnot Cycle ◽  
Social Efficiency ◽  
Material Wealth ◽  
Budget Analysis ◽  
Modern Economic ◽  
S Model ◽  
Specific Amount

The author´s model, which is close to the interpretation of econophysical" direction leniyu in modern economic theory (the Carnot cycle in the thermodynamic) resulting economic system specific amount of public expenditure and investments always result in the ideal case ("zero-loss" maximum mally possible social efficiency of public spending and investments) to the maximum possible rate of economic growth. The result of the model developed by the author of a balanced open economy is to overcome the barrier of the alleged lack of economic system of quantitative constants, so it is very different from the physical systems (with full awareness of the limitations of its author: irreducibility public the progress of human development to increase income or augmenting material wealth, economic growth). Holistic macroeconomic model proposed above, following the introduction of her in the preparation, negotiation, approval and implementation of the budget analysis relevant government authorities allow, in our opinion "sighted", and not blindly justify the scientific and strictly control the effectiveness of direction tions of macroeconomic development, their deviation from ideal.

scholarly journals How Costly is Protectionism?

1992 ◽  
Vol 6 (3) ◽  
pp. 159-178 ◽  
Author(s):  
Robert C Feenstra
Keyword(s):  
North America ◽  
Free Trade ◽  
Foreign Firms ◽  
Gains From Trade ◽  
Free Trade Areas ◽  
Policy Perspective ◽  
Global Policy ◽  
Foreign Countries ◽  
The U.S

How costly is protectionism? This paper begins from a U.S. perspective, examining the costs to both the U.S. and other countries from U.S. protectionism. It emphasizes that substantial costs are imposed on foreign countries by U.S. protectionism. These costs result from the highly selective nature of protection in particular industries and against particular exporting countries. No discussion of the costs of protection would be complete without mentioning the increasing levels of investment by foreign firms within the U.S. economy. The paper next moves to a more global policy perspective. The emerging free trade areas in Europe, North America, and Asia raise the prospect of gains from trade within each region but also the possibility of global costs from protectionist actions across the regions.

Privatization, foreign competition, and social efficiency of free entry

2014 ◽  
Vol 31 ◽  
pp. 138-147 ◽  
Author(s):  
Leonard F.S. Wang ◽  
Jen-yao Lee ◽  
Chu-chuan Hsu
Keyword(s):  
Foreign Competition ◽  
Free Entry ◽  
Social Efficiency

Market structure and knowledge acquisition by firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Hemsley ◽  
Rafael Morais ◽  
Karinna Di Iulio
Keyword(s):  
Knowledge Acquisition ◽  
Open Economy ◽  
Perfect Competition ◽  
Content Type ◽  
Firm Theory ◽  
Market Structures ◽  
Us Economy ◽  
The Us ◽  
Main Input ◽  
The Relationship

PurposeRecent models in firm theory assume that problems have to be solved for production to take place and that knowledge is the main input for problem-solving. This paper characterizes the relationship between the predictability of production prcesses and investment in knowledge.Design/methodology/approachThis paper uses a theoretical model of firm theory to study investment in knowledge by a simplified one-layer firm with a stochastic technology, across different market structures, and develops a calibration exercise to illustrate the results.FindingsFirms working closer to the production frontier (those with a larger efficient scale in perfect competition, facing a higher demand in monopoly or more competitive internationally in an open economy) react more in terms of investment in knowledge when problem predictability changes. Investment in knowledge becomes nearly insensitive to such changes for firms with a low output, i.e. those far from the frontier. A calibration exercise suggests that the elasticity of knowledge with respect to the predictability of problems was around 0.59 for the US economy for the period 1980–2020.Originality/valueThese are the first nonambiguous results on the relationship between the predictability of production processes and investment in knowledge and help understanding knowledge acquisition by different firms in distinct competitive environments.

Corporation Tax, the Exchange Rate, and Cross-Border Firm Mobility

2021 ◽  
Author(s):  
Wataru Johdo
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Corporate Tax ◽  
Economy Model ◽  
Tax Rate ◽  
Corporation Tax ◽  
New Open Economy Macroeconomics ◽  
Cross Border ◽  
Tax Reduction ◽  
Foreign Countries

In this paper, we extend a new open economy macroeconomics (NOEM) model to examine the effects of a corporate tax reduction on home and foreign countries. The feature of this open economy model is that cross-border relocation of firms is allowed. We show that (i) a reduction in the home corporate tax rate induces an exchange rate appreciation (depreciation) when the degree of cross-border firm mobility is large (small) and (ii) when the degree of cross-border firm mobility is large (small), a reduction in corporate tax is beneficial (detrimental) to the domestic country but detrimental (beneficial) to the foreign country.

Foreign competition and social efficiency of entry

2013 ◽  
Vol 32 ◽  
pp. 108-112 ◽  
Author(s):  
Sugata Marjit ◽  
Arijit Mukherjee
Keyword(s):  
Foreign Competition ◽  
Social Efficiency
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