Markups, International Specialization, and the Gains from Trade

Debt crisis in South European region turned out to be the focal point of the European debt crisis. It made explicit fundamental disproportions in the development of the Eurozone, in particular strict division between the Center and the Periphery. After joining to the Eurozone South European countries faced further deterioration of their positions in the global markets and fixing of an unfavorable type of their international specialization. Such situation can be seen most evidently in the case of Greece.

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Legal Environment and Contractual Choice

The B E Journal of Theoretical Economics ◽

10.1515/bejte-2020-0098 ◽

2021 ◽

Vol 0 (0) ◽

Author(s):

Ho Cheung Cheng

Keyword(s):

Optimal Contract ◽

Legal Environment ◽

Gains From Trade ◽

Legal Systems ◽

Ex Post ◽

Ex Ante ◽

Contractual Choice

Abstract This paper considers contractual choice under imperfect legal systems, in particular, contracts with different timing of payment. Ex-ante payment contracts are risky for the buyer, because the seller may shirk. Ex-post payment contracts are risky for the seller, as the buyer may default. Optimal contract is solved for any given legal environment. Exchanges with lower gains from trade tend to adopt ex-post payment contracts. The seller is a better proposer than the buyer in terms of the efficiency of the proposed contract. Surprisingly, offering ex-ante payment contracts is not strictly better for the seller under any legal environment. Moreover, mixed payment contracts are also analyzed and shown to never be optimal.

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Weight Gains from Trade in Foods: Evidence from Mexico

SSRN Electronic Journal ◽

10.2139/ssrn.3468625 ◽

2019 ◽

Author(s):

Osea Giuntella ◽

Matthias Rieger ◽

Lorenzo Rotunno

Keyword(s):

Gains From Trade ◽

Weight Gains

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The First Globalization Debate: Crusoe vs. Gulliver

QA Rivista dell Associazione Rossi-Doria ◽

10.3280/qu2011-003005 ◽

2011 ◽

pp. 107-125

Author(s):

Craufurd D. Goodwin

Keyword(s):

Science Fiction ◽

Common Sense ◽

World Economy ◽

Daniel Defoe ◽

Jonathan Swift ◽

Gains From Trade ◽

Robinson Crusoe ◽

Adventure Story ◽

Gulliver's Travels

Two of the earliest novels in English, Robinson Crusoe (1719) by Daniel Defoe and Gulliver's Travels (1726) by Jonathan Swift, are widely perceived as an entertaining adventure story and a pioneering work of science fiction. Viewed by modern economists, however, they appear as expressions of opposing positions on the desirability of integration within a world economy. Crusoe demonstrated the gains from trade and colonization and the attendant social and political benefits. By contrast, Swift warned of complex entanglements that would arise from globalization, especially with foreign leaders who operated from theory and models rather than common sense.

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