Commercial policy and dynamic adjustment under monopolistic competition

• 成果类型: Article
• 署名作者: Keuschnigg, C; Kohler, W
• 署名单位: Centre for Economic Policy Research - UK; Johannes Kepler University Linz
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(95)01409-8
• 发表日期: 1996
• 页码: 373-409
• 关键词: trade liberalization; CGE modeling; monopolistic competition; investment multiplier; overlapping generations; net foreign assets

摘要

We explore liberalization of trade in differentiated commodities using a model featuring monopolistic competition and capital accumulation, We identify a mechanism of 'cumulative causation' in investment and an associated externality leading to under-accumulation. We provide long-run analytical results for a stylized core model and offer a quantitative treatment of transitional and sectoral issues using a disaggregate computational model. The aggregate welfare gains from unilateral liberalization are about three times larger than in the competitive case with constant returns, and they exhibit a characteristic pattern of generational incidence. Small export subsidies may be self-financing.