[PDF] A Model Of World Supply Demand And Trade In Differentiated Products eBook

Author : Daniel Gros
Publisher :
Page : 32 pages
File Size : 29,14 MB
Release : 2006
Category :
ISBN :

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The paper develops a two-country model of trade in differentiated products and contrasts the determinants of, and inter-relationships between, trade and competitiveness in the short run (when wage rates and the exchange rate are fixed), the intermediate run (when wages and the exchange rate are flexible, but the number of firms is fixed), and the long run (when all variables can adjust). The two-country general-equilibrium model yields predictions that differ considerably from those obtained from comparable small-country models and describes how and why the relationship between the trade balance and competitiveness might vary over time.

Author : Peter John Lloyd
Publisher : Edward Elgar Publishing
Page : 584 pages
File Size : 32,53 MB
Release : 2003
Category : Business & Economics
ISBN :

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This authoritative new collection presents a selection of previously published seminal articles that have led to the development of intra-industry trade theory and empirical research. Parts I and II cover the pioneering research in the 1960s and a number of models of intra-industry trade that were developed from 1979 to the present day. Parts III and IV look at the empirical research problems in the choice of measure of intra-industry trade and empirical studies that seek to identify the nature of this trade. Part V deals with the role of the multinational corporation and part VI completes the collection with articles that look at extensions to asset markets and applications to other problems such as the geography of trade and rules of origin. Intra-Industry Trade will be an invaluable source of reference to all international trade economists and libraries specialising in this area.

Author : John Beath
Publisher : Cambridge University Press
Page : 220 pages
File Size : 44,57 MB
Release : 1991-02-22
Category : Business & Economics
ISBN : 9780521335522

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There are few industries in modern market economies that do not manufacture differentiated products. This book provides a systematic explanation and analysis of the widespread prevalence of this important category of products. The authors concentrate on models in which product selection is endogenous. In the first four chapters they consider models that try to predict the level of product differentiation that would emerge in situations of market equilibrium. These market equilibria with differentiated products are characterised and then compared with social welfare optima. Particular attention is paid to the distinction between horizontal and vertical differentiation as well as to the related issues of product quality and durability. This book brings together the most important theoretical contributions to these topics in a succinct and coherent manner. One of its major strengths is the way in which it carefully sets out the basic intuition behind the formal results. It will be useful to advanced undergraduate and graduate students taking courses in industrial economics and microeconomic theory.

Author : Amit Gandhi
Publisher :
Page : pages
File Size : 28,38 MB
Release : 2021
Category : Econometrics
ISBN :

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This is an invited chapter for the forthcoming Volume 4 of the Handbook of Industrial Organization. We present empirical models of demand and supply in differentiated products industries with an emphasis on the key ideas arising from the recent applied literature. We start with a discussion of the challenges in modeling and estimation of demand for differentiated products, and focus on discrete choice characteristics-based demand models that address these challenges while allowing enough flexibility to capture realistic substitution patterns. Our discussion emphasizes how empirical strategies can leverage different features of data depending on the sources of variation that are commonly found in applied work. Moving to the supply-side, we show how demand estimates combined with a pricing model, can be used to recover markups and marginal costs. We also show how the model of pricing can be tested. We discuss a baseline Bertrand-Nash model of competitive pricing, and expand it to cover a) coordinated pricing, b) wholesale relationships, and c) bargaining. We end the chapter with extensions of the demand model, including dynamic and continuous demand.

Author : Jaime De Melo
Publisher : World Bank Publications
Page : 44 pages
File Size : 38,95 MB
Release : 1989
Category : Commercial products
ISBN :

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In a simple, one -sector analytical model, the authors show that applying the same assumption about product differentiation to imports as to exports gives rise to a well -behaved, price -taking economy and normally shaped offer curves.

Author : John Robert Roy
Publisher :
Page : pages
File Size : 38,38 MB
Release : 1993
Category : Mathematical models
ISBN :

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In modelling trade competition for final products within a sector, the assumption of product homogeneity is often quite unrealistic. Even where the demand for different versions of the product can be attributed to relatively independent submarkets, considerable heterogeneity may still exist within each submarket. For each submarket, such as that for a medium-priced family car, it is assumed that more product heterogeneity exists between countries or regions than within them. Heterogeneity between regions is related to the existence of importers, acting as intermediate agents, who make trade-offs between cif import prices of goods and the willingness-to-pay by consumers. Aggregate spatial supply and demand functions based on plausible distributional assumptions are presented and estimated using a unified theoretical basis for each regional grouping of producers, importers and consumers. Conditions for simultaneous equilibrium for these three sets of agents are established, and illustrated via a small numerical example.