Modeling bilateral forest products trade.

The focus in this chapter is on the development of mathematical programming models used to model bilateral forest products trade. Theoretical outlines are provided of a multi-region, single product trade model and of an integrated, multi-region, multi-product trade model. The objective function and constraints are described mathematically, while the analysis takes into account horizontal and vertical chains and the need to calibrate the model using observed trade flows. Data sources are discussed, and the GAMS code is provided for the uncalibrated and calibrated versions of the model. The Canada-U.S. softwood lumber dispute is the raison d'être for much applied work in modeling forest products trade, especially on Canada's side. In this chapter, we examine several spatial price equilibrium (SPE) trade models that are currently used to investigate the implications of trade barriers imposed on Canadian exports of softwood lumber to the United States. The reason we consider bilateral trade is so that we can determine the impacts of trade restrictions on various regions in North America. We begin in the next section by specifying a general but vertically integrated SPE trade model.

Spatial price equilibrium trade modelling: theory.

The theory of measuring economic welfare across horizontal and vertical chains is provided in this chapter. As demonstrated, it underlies the spatial price equilibrium (SPE) trade models. The vertical and horizontal chains involved in a particular trade model, referred to as the REPA model, are described as an illustration.

Modeling bilateral forest products trade.

The focus in this chapter is on the development of mathematical programming models used to model bilateral forest products trade. Theoretical outlines are provided of a multi-region, single product trade model and of an integrated, multi-region, multi-product trade model. The objective function and constraints are described mathematically, while the analysis takes into account horizontal and vertical chains and the need to calibrate the model using observed trade flows. Data sources are discussed, and the GAMS code is provided for the uncalibrated and calibrated versions of the model. The Canada-U.S. softwood lumber dispute is the raison d'être for much applied work in modeling forest products trade, especially on Canada's side. In this chapter, we examine several spatial price equilibrium (SPE) trade models that are currently used to investigate the implications of trade barriers imposed on Canadian exports of softwood lumber to the United States. The reason we consider bilateral trade is so that we can determine the impacts of trade restrictions on various regions in North America. We begin in the next section by specifying a general but vertically integrated SPE trade model.

Spatial price equilibrium trade modelling: theory.

The theory of measuring economic welfare across horizontal and vertical chains is provided in this chapter. As demonstrated, it underlies the spatial price equilibrium (SPE) trade models. The vertical and horizontal chains involved in a particular trade model, referred to as the REPA model, are described as an illustration.

Socio-economic views of P. B. Struve (to the 150th anniversary of his birth)

Introduction. In 2020 marks the 150th anniversary of the birth of P. B. Struve, an outstanding Russian scientist, economist and philosopher, public and political figure. The aim of the study is to evaluate the scientific contribution of P. B. Struve to the development of Russian socio-economic thought, taking into account the existing new social reality. Materials and Methods. The study used the methods of analysis, synthesis, generalizations and axiology, as well as historical and retrospective, historical and genetic and hermeneutical methods of studying problematic issues in the history of economic science. The study is based on primary sources: the economic works of P. B. Struve himself and his contemporaries. Results. Among the most significant political and economic ideas of P. B. Struve, the scientific concepts formulated by him of the “state-master” and “human fitness” are highlighted. The differences between P. B. Struve and V. I. Lenin in understanding the nature and nature of land rent are shown. The scientist’s contribution to the development of price theory and pricing issues is revealed. The conclusion is drawn on the political and economic essence and content of the socio-economic views of P. B. Struve as an ideology of economic humanism. Discussion and Conclusion. Domestic and foreign studies of the views of P. B. Struve of the second half of the 20th and the first decades of the 21st centuries are noted. The assessment of the concept of macroeconomic (price) equilibrium by P. B. Struve in comparison with similar ideas of A. Marshall, A. Pareto, L. Walras, J. R. Hicks is given. The main stages in the evolution of the socio-economic views of P. B. Struve are highlighted.

Simultaneous Search for Differentiated Products: The Impact of Search Costs and Firm Prominence

We extend the literature on simultaneous search by allowing for differentiated products and search cost heterogeneity. We show conditions under which a symmetric price equilibrium exists. We provide a necessary and sufficient condition under which an increase in search costs may result in a lower, equal or higher equilibrium price. We extend this analysis to the case with more than two firms. The effects of prominence on equilibrium prices are also studied. The prominent firm charges a higher price than the non-prominent firm and both their prices are below the symmetric equilibrium price. Consequently, market prominence increases the consumers’ surplus.

Equilibrium Price Dispersion with Search Regret Disutility

I examine an extension of the Burdett and Judd ([1983] . Equilibrium price dispersion. Econometrica, 51[4], 955–970) model whereby the consumers with positive search costs experience search regret disutility. First, I focus on the non-sequential search equilibrium in which the said consumers randomize between searching for one price and searching for two prices. When the disutility is significant (a) the spectrum of parameters for which this dispersed price equilibrium can be sustained widens significantly compared to the setting with no disutility; (b) this dispersed price equilibrium is unique and stable in contrast to the multiplicity of dispersed price equilibria of this type which arise in the original model; and (c) in the stable dispersed price equilibrium of this type the consumers with positive search costs respond to the possibility of search regret disutility by increasing their equilibrium search intensity. Second, I concentrate on the noisy sequential search equilibrium in which the reservation price is endogenous. When the search cost takes relatively high values, then compared to the setting with no disutility (a) the set of parameters for which this dispersed price equilibrium is supported may become significantly smaller; (b) the reservation price decreases; and (c) the consumers with positive search costs choose the same search intensity. JEL Classifications: D41, D83