Technical progress, innovation and product differentiation in a Ricardian trade model with a continuum of goods

The Ricardian model is often considered of limited use and scope for the explanation of trade flows, as it cannot account for various important aspects of real world trade such as innovation goods or intra-industry trade. This is basically due to the fact that the Ricardian model is usually presented in the two-good, two-country form. However, using a Ricardian model with a continuum of goods does not only allow an analysis of the effects of technical progress or the production of new, innovative goods. It is also possible to explain intra-industry trade solely within the general setting of a Ricardian model

Intermediation in Foreign Trade: When Do Exporters Rely on Intermediaries?

The paper explores theoretically and empirically why trade intermediaries (TIs) are frequently used as agents for exports to some countries but not to others. We adapt a standard intra-industry trade model with variable export costs (e.g. transport) and fixed export costs (e.g. market access) to include a TI that is able to pool market access cost. From this framework explanatory factors for the TI share in a country's exports are derived and subsequently tested with a new data set based on French customs information. The paper finds that: (i) higher market access costs increase the TI share, (ii) smaller export markets feature a larger TI share, (iii) the TI share is independent from variable (distance-dependent) export costs.trade intermediation, indirect exports, transaction costs, monopolistic competition

Fire resistivity and toxicity studies of candidate aircraft passenger seat materials

Fire resistivity studies were conducted on a wide range of candidate nonmetallic materials being considered for the construction of improved fire resistant aircraft passenger seats. These materials were evaluated on the basis of FAA airworthiness burn and smoke generation tests, colorfastness, limiting oxygen index, and animal toxicity tests. Physical, mechanical, and aesthetic properties were also assessed. Candidate seat materials that have significantly improved thermal response to various thermal loads corresponding to reasonable fire threats as they relate to in-flight fire situations, are identified

Berufsarmee statt Wehrpflicht: eine ökonomisch sinnvolle Lösung

Die Bundeswehr steht derzeit vor einer ihrer größten Umstrukturierungen. Vorgesehen ist eine Neugliederung der Streitkräfte in Eingreif-, Stabilisierungs- und Unterstützungsverbände. In diesem Zusammenhang stellt sich erneut die Frage nach der Beibehaltung der Wehrpflicht. Diese ist aus ökonomischer Sicht nicht sinnvoll, denn eine Berufsarmee stellt das gleiche Niveau an äußerer Sicherheit zu geringeren volkswirtschaftlichen Kosten bereit. Darüber hinaus verletzt die Wehrpflicht in ihrer derzeitigen Ausgestaltung wesentliche Prinzipien ökonomischer Gerechtigkeit. Auch unter ordnungspolitischen Gesichtspunkten ist die Abschaffung der Wehrpflicht überfällig, da sie zwei elementaren Prinzipien der Marktwirtschaft widerspricht, nämlich dem der Vertragsfreiheit und dem der Freiwilligkeit von Austauschbeziehungen. Ebenso sprechen heute die gesellschaftlichen und sicherheitspolitischen Veränderungen für eine Berufsarmee.