Migration, intermediate inputs and real wages

To examine the effects of immigration on real wages it is important to focus on the interaction between the labour and intermediate input markets. Immigration can lead to more extensive exploitation of external and internal efficiencies in other input markets, resulting in higher real wages in the destination country

Devaluation of fixed exchange rates: Optimal strategy in the presence of speculation

This paper analyzes devaluations in a fixed exchange rate system by endogenizing both the speculation and devaluation decisions. It is shown that deterministic devaluation rules are generally sub-optimal for the central bank. In order to deter speculation the central bank introduces uncertainty into the timing of devaluation. The nature this mixed strategy is derived, as is the optimal strategy for speculators. The analysis allows an explanation of successful devaluations that are not precipitated by a speculative attacks, even under perfect capital mobility

Increasing Dominance - the Role of Advertising, Pricing and Product Design

Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing, market structure and increasing (or decreasing) dominance. In a simple model of persuasive advertising and pricing with differentiated goods, we analyze the interdependencies between ex-ante asymmetries in consumer appeal, advertising and prices. Products with larger initial appeal to consumers will be advertised more heavily but priced at a higher level - that is, advertising and price discounts are strategic substitutes for products with asymmetric initial appeal. We find that the escalating effect of advertising dominates the moderating effect of pricing so that post-competition market shares are more asymmetric than pre-competition differences in consumer appeal. We further find that collusive advertising (but competitive pricing) generates the same market outcomes, and that network effects lead to even more extreme market outcomes, both directly and via the effect on advertising

Cost of delay, deadlines and endogenous price leadership

SIGLEAvailable from British Library Document Supply Centre-DSC:3597.9512(no 3054) / BLDSC - British Library Document Supply CentreGBUnited Kingdo

Speculation and the decision to abandon a fixed exchange rate regime

Issued under the auspices of the Centre's research programme in International MacroeconomicsAvailable from British Library Document Supply Centre-DSC:3597.9512(no 2893) / BLDSC - British Library Document Supply CentreSIGLEGBUnited Kingdo