-
作者：FLAM, H
作者单位：Centre for Economic Policy Research - UK
摘要：Japan has agreed with the EC to put a voluntary export restraint (VER) on cars. Policies in the EC toward foreign direct investment (FDI) by Japanese firms remain under national jurisdiction. The VER benefits producing countries and hurts non-producing countries. FDI reverses these effects. The combination of a VER and FDI is an equilibrium outcome between conflicting countries, and results from uncoordinated EC policies and the strength of producing countries in EC decision-making. It can be ...
-
作者：HOFF, K
摘要：This paper presents a model that pinpoints the exact places and reasons that the propositions of the Heckscher-Ohlin-Samuelson model break down under uncertainty. Within the model, if preferences exhibit decreasing absolute risk aversion, (i) a capital-poor country tends to obtain lower revenues from its resources than the same resources would yield in capital-rich countries, (ii) if there is one riskless and one risky sector, a capital-abundant country tends to have a comparative advantage in...
-
作者：PARK, D
摘要：This paper investigates the effect of liberalization of capital account transactions on the viability of a fixed exchange regime. Using a finite time horizon model a la Blanchard, the paper demonstrates a case where removal of restrictions on capital outflows alone can cause a balance-of-payments crisis in the absence of any other external shocks. The increased burden of debt service as well as the dynamics of the economy after liberalization are identified as potential sources of reserve outf...
-
作者：HUSTED, S
-
作者：LEVINE, R
-
作者：JENSEN, H
作者单位：Aarhus University; Aarhus University
摘要：I consider an example of a two-country model featuring national heterogeneity, and demonstrate that heterogeneity plays an important role for the countries' gains from international policy cooperation, and - just as important - for the incentives to break the cooperative agreement. I find that national heterogeneity unambiguously reduces trigger strategies' support for policy cooperation. In other words, the more countries differ, the harder it is to sustain policy cooperation.
-
作者：POPPER, H
-
作者：NEARY, JP
作者单位：Ulster University
摘要：I consider the optimality of export subsidies in oligopolistic markets, when home and foreign firms have different costs and the social cost of public funds exceeds unity. Subsidies are optimal only for surprisingly low values of the social cost of public funds and, if subsidies are justified, they should be higher the more cost competitive are domestic firms. These results hold under both Cournot and Bertrand competition and in a two-period perfect equilibrium with learning by doing. The resu...
-
作者：KARAYALCIN, C
摘要：This paper studies the effects of supply and demand shocks on the optimal investment and savings decisions of economic agents in a small open economy. The two building blocks of the setup are adjustment costs in investment and a recursive time preference structure. It is shown that the model can mimic certain stylized facts.
-
作者：GRINOLS, EL; TURNOVSKY, SJ
作者单位：University of Washington; University of Washington Seattle; University of Illinois System; University of Illinois Urbana-Champaign
摘要：This paper constructs a stochastic general equilibrium model of a small open economy consisting of risk-averse optimizing agents. The stochastic processes describing the rate of monetary growth, government expenditure, private production, and the foreign price level are taken to be exogenous, determining all asset risks and returns, and the equilibrium stochastic process describing the domestic inflation rate and the exchange rate. The model is used to examine the effects of the means and vari...
