5,637 research outputs found
A 'Reciprocal Dumping' Model of International Trade
This paper develops a model in which the rivalry of oligopolistic firms serves as an independent cause of international trade. The model shows how such rivalry naturally gives rise to "dumping" of output in foreign markets, and shows that such dumping can be "reciprocal" -- that is, there may be two-way trade in the same product. Reciprocal dumpingis shown to be possible for fairly general specification of firm behaviour.The welfare effects of this seemingly pointless trade are ambiguous. On one hand, resources are wasted in the cross-handling of goods; on the other hand, increased competition reduces monopoly distortions. Surprisingly,in the case of free entry and Cournot behaviour reciprocal dumping is unanibiuously beneficial.
Analysis of the phenomenon of speculative trading in one of its basic manifestations: postage stamp bubbles
We document and analyze the empirical facts concerning one of the clearest
evidence of speculation in financial trading as observed in the postage
collection stamp market. We unravel some of the mechanisms of speculative
behavior which emphasize the role of fancy and collective behavior. In our
conclusion, we propose a classification of speculative markets based on two
parameters, namely the amplitude of the price peak and a second parameter that
measures its ``sharpness''. This study is offered to anchor modeling efforts to
realistic market constraints and observations.Comment: 9 pages, 5 figures and 2 tables, in press in Int. J. Mod. Phys.
Patterns of dominant flows in the world trade web
The large-scale organization of the world economies is exhibiting
increasingly levels of local heterogeneity and global interdependency.
Understanding the relation between local and global features calls for
analytical tools able to uncover the global emerging organization of the
international trade network. Here we analyze the world network of bilateral
trade imbalances and characterize its overall flux organization, unraveling
local and global high-flux pathways that define the backbone of the trade
system. We develop a general procedure capable to progressively filter out in a
consistent and quantitative way the dominant trade channels. This procedure is
completely general and can be applied to any weighted network to detect the
underlying structure of transport flows. The trade fluxes properties of the
world trade web determines a ranking of trade partnerships that highlights
global interdependencies, providing information not accessible by simple local
analysis. The present work provides new quantitative tools for a dynamical
approach to the propagation of economic crises
Corporate Hierarchies and the Size of Nations: Theory and Evidence
Corporate organization varies within a country and across countries with country size. The paper starts by establishing some facts about corporate organization based on unique data of 660 Austrian and German corporations. The larger country (Germany) has larger firms with flatter more decentral corporate hierarchies compared to the smaller country (Austria). Firms in the larger country change their organization less fast than firms in the smaller country. Over time firms have been introducing less hierarchical organizations by delegating power to lower levels of the corporation. We develop a theory which explains these facts and which links these features to the trade environment that countries and firms face. We introduce firms with internal hierarchies in a Krugman (1980) model of trade. We show that international trade and the toughness of competition in international markets induce a power struggle in firms which eventually leads to decentralized corporate hierarchies. We offer econometric evidence which is consistent with the models predictions
Worldwide spreading of economic crisis
We model the spreading of a crisis by constructing a global economic network
and applying the Susceptible-Infected-Recovered (SIR) epidemic model with a
variable probability of infection. The probability of infection depends on the
strength of economic relations between the pair of countries, and the strength
of the target country. It is expected that a crisis which originates in a large
country, such as the USA, has the potential to spread globally, like the recent
crisis. Surprisingly we show that also countries with much lower GDP, such as
Belgium, are able to initiate a global crisis. Using the {\it k}-shell
decomposition method to quantify the spreading power (of a node), we obtain a
measure of ``centrality'' as a spreader of each country in the economic
network. We thus rank the different countries according to the shell they
belong to, and find the 12 most central countries. These countries are the most
likely to spread a crisis globally. Of these 12 only six are large economies,
while the other six are medium/small ones, a result that could not have been
otherwise anticipated. Furthermore, we use our model to predict the crisis
spreading potential of countries belonging to different shells according to the
crisis magnitude.Comment: 13 pages, 4 figures and Supplementary Materia
Cultural and economic complementarities of spatial agglomeration in the British television broadcasting industry: Some explorations.
This paper considers the processes supporting agglomeration in the British television broadcasting industry. It compares and contrasts the insights offered by the cultural turn in geography and more conventionally economic approaches. It finds that culture and institutions are fundamental to the constitution of production and exchange relationships and also that they solve fundamental economic problems of coordinating resources under conditions of uncertainty and limited information. Processes at a range of spatial scales are important, from highly local to global, and conventional economics casts some light on which firms are most active and successful
Power in the Multinational Corporation in Industry Equilibrium
Recent theories of the multinational corporation introduce the property rights model of the firm and examine whether to integrate our outsource firm activities locally or to a foreign country. This paper focus instead on the internal organization of the multinational corporation by examining the power allocation between headquarters and subsidiaries. We provide a framework to analyse the interaction between the decision to serve the local market by exporting or FDI, market acces and the optimal mode of organization of the multinational corporation. We find that subsidiary managers are given most autonomy in their decision how to run the firm at intermediate levels of local competition. We then provide comparative statics for changes in fixed FDI entry costs and trade costs, information technology, the number of local competitors, and in the size of the local market
Simple technique for evacuation of traumatic subcutaneous haematomas under tension
BACKGROUND: Traumatic subcutaneous haematomas are common cases in the accident and emergency department. Occasionally, urgent evacuation is required to prevent skin necrosis. METHODS: We present a simple and safe technique, based on a principle similar to liposuction to evacuate traumatic subcutaneous haematomas under tension. Instruments readily available in the accident and emergency department are used without the need of general anaesthesia. RESULTS: The technique was performed in six cases without complication such as infection or re-collection of the haematoma under tension. We present two typical scenarios where urgent evacuation was indicated and the technique performed. CONCLUSION: The technique is useful as an urgent and safe procedure in the accident and emergency department setting
Genomic dissection of whole-plant responses to water deficit in durum wheat × wild emmer wheat RIL population
In this article we examine trends in age homogamy in first marriages in the Netherlands since 1942.... We analyze population data collected by Statistics Netherlands. Controlling for the age distribution of first-marrying men and women, chances are greatest to have married a partner of the same age. These relative chances decrease with rising age at marriage, and increase over historical time. The association between spouses' ages in age-divergent marriages is greater when the husband is older than his wife. This asymmetry in the association decreased until 1970, but increased up until 1994
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