Trade and Wages: A Deeper Investigation

A new presentation of the specific factors model shows how labor fares under international trade by considering how the price elasticity of the nominal wage rate responds to the terms of trade as well as factor endowments. Gains to labor are decomposed into measurable terms of trade effects and production bias effects. If trade is caused by differences in technology, trade can harm the interests of labor when the elasticities of substitution are sufficiently small. If trade is caused by differences in labor endowments, trade raises real wages in the labor abundant country, even if exports are capital intensive.trade, real wages, beta function, specific factors

Vertical Foreclosure and International Trade Policy

We examine conditions under which a low cost vertically integrated manufacturer has an incentive to export an intermediate product to its higher cost (vertically integrated) rival rather than to vertically foreclose, fully cutting off supplies. The nature of supply conditions in the importing country, the size of an import tariff on the final good and optimal policy by the exporting country are all shown to be important for this decision. The exporting country may gain by taxing exports of the final (Cournot) product even though, under Cournot competition, an export subsidy is optimal in the absence of a market for intermediates. In this case, optimal policy also requires an export tax on intermediates, but the higher tax on final goods serves to divert sales to the more profitable market for intermediates increasing the extent of vertical supply. It is optimal to tax the export of both goods or to subsidize the export of both goods. It is never optimal to tax one and subsidize the other.

Globalization and Country-Specific Service Links

The Jones-Kierzkowski model of global fragmentation of production draws attention to the cost and efficiency of “service links” connecting “production blocks” in different countries. Country-specific service links include transport and telecommunications infrastructure and the overall business climate. Mobile factors of production, most prominently foreign direct investment (FDI), can shop around for countries with the most functional and inexpensive service links along with low labor costs. Those countries with favorable business climates and well-functioning service links are able to attract FDI and other mobile inputs, and participate in international production networks. We provide evidence that successful exporters of manufactures, notably in East Asia, have relatively favorable service links. A cross-section analysis of manufactured exports and of FDI in manufacturing confirms the importance of service link infrastructure.Conflicting claims, Division rules, Operators, Minimal rights, Maximal claims, Duality, Convexity.

Globalization and Country-Specific Service Links

The Jones-Kierzkowski model of global fragmentation of production draws attention to the cost and efficiency of “service links” connecting “production blocks” in different countries. Country-specific service links include transport and telecommunications infrastructure and the overall business climate. Mobile factors of production, most prominently foreign direct investment (FDI), can shop around for countries with the most functional and inexpensive service links along with low labor costs. Those countries with favorable business climates and well-functioning service links are able to attract FDI and other mobile inputs, and participate in international production networks. We provide evidence that successful exporters of manufactures, notably in East Asia, have relatively favorable service links. A crosssection analysis of manufactured exports and of FDI in manufacturing confirms the importance of service link infrastructure.

Effects of Advertising on the Demand for Potatoes

Exact date of working paper unknown.Declining per capita consumption of fresh potatoes prompted potato producers to approve the Potato Research and Promotion Act for generic advertising of fresh potatoes and processed potato products. Generic advertising started in 1971, and annual expenditures currently average $3.4 to$3.6 million. Concurrent with generic advertising is brand advertising on all processed potato products. To estimate returns to potato producers from these advertising expenditures, this paper specified and estimated an econometric model. Results show that both brand and generic advertising are effective in stimulating demand for all processed potato products. Generic advertising does not positively impact the demand for fresh potatoes

Robotic Manufacturing of 18-ft (5.5m) Diameter Cryogenic Fuel Tank Dome Assemblies for the NASA Ares I Rocket

The Ares I rocket was the first launch vehicle scheduled for manufacture under the National Aeronautic and Space Administration's Constellation program. A series of full-scale Ares I development articles were constructed on the Robotic Weld Tool at the NASA George C. Marshall Space Flight Center in Huntsville, Alabama. The Robotic Weld Tool is a 100 ton, 7- axis, robotic manufacturing system capable of machining and friction stir welding large-scale space hardware. This paper will focus on the friction stir welding of 18-ft (5.5m) diameter cryogenic fuel tank components; specifically, the liquid hydrogen forward dome and two common bulkhead manufacturing development articles

Manufacturing of 5.5 Meter Diameter Cryogenic Fuel Tank Domes for the NASA Ares I Rocket

The Ares I rocket is the first launch vehicle scheduled for manufacture under the National Aeronautic and Space Administration s (NASA s) Constellation program. A series of full-scale Ares I development articles have been constructed on the Robotic Weld Tool at the NASA George C. Marshall Space Flight Center in Huntsville, Alabama. The Robotic Weld Tool is a 100 ton, 7-axis, robotic manufacturing system capable of machining and friction stir welding large-scale space hardware. This presentation will focus on the friction stir welding of 5.5m diameter cryogenic fuel tank components; specifically, the liquid hydrogen forward dome (LH2 MDA) and the common bulkhead manufacturing development articles (CBMDA). The LH2 MDA was the first full-scale, flight-like Ares I hardware produced under the Constellation Program. It is a 5.5m diameter elliptical dome assembly consisting of eight gore panels, a y-ring stiffener and a manhole fitting. All components are made from aluminum-lithium alloy 2195. Conventional and self-reacting friction stir welding was used on this article. Manufacturing solutions will be discussed including the implementation of photogrammetry, an advanced metrology technique, as well as fixtureless welding. The LH2 MDA is the first known fully friction stir welded dome ever produced. The completion of four Common Bulkhead Manufacturing Development Articles (CBMDA) will also be highlighted. Each CBMDA consists of a 5.5m diameter spun-formed dome friction stir welded to a y-ring stiffener. The domes and y-rings are made of aluminum 2014 and 2219 respectively. An overview of CBMDA manufacturing processes and the effect of tooling on weld defect formation will be discussed

International Differences in Response to Common External Shocks: The Role of Purchasing Power Parity

Published in connection with a visit at the IIE