R&D, Market Structure and Trade: A General Equilibrium Analysis

That many industries exhibit highly concentrated market structures, even at the global level, calls for trade theoretic analyses which can accommodate this fact. We present a two-country, general equilibrium analysis in which high concentration levels can be sustained through the interaction between R&D and market structure, whilst emphasizing the effects of trade and industrial policy on wages and welfare. The world economy is characterized by asymmetric initial conditions and populations. If initial conditions are very different, freetrade reduces wages in a backward economy, relative to autarky. However, the advanced economy always achieves higher wages through trade. Welfare gains from trade arise when economies are either very similar or very different. In the intermediate case, when initial conditions are not too different, and the advanced economy’s population is not very large, the backward economy loses from trade, while the advanced economy gains. A compensation mechanism is feasible and would ensure that no nation loses from trade. The analysis provides formal criteria for the choice of trade partners and the formation of trade blocs. Moreover, industrial policy (an R&D subsidy) is shown to be neutral or ineffective, in the sense that it does not affect any real magnitudes.International trade, industrial policy, product quality, R&D, market structure, initial conditions

Endogenous Technological Capability,Trade Policy and Coordination Failure: A Reconsideration of Economic Take-Off(s)

Economic development may feature entry into high-tech industries (�high-tech industrialization�), or expansion along low-tech trajectories (�low-tech industrialization�). By endogenizing technological capability within a coordination failure framework, we uncover mechanisms that help explain the differences between these types of industrialization. The process of development is characterized through a sequence of take-offs. In the first instance, an �industrial take-off� triggers industrialization. Subsequently, a �technological take-off� activates investment in technological capability. If wages rise too rapidly after crossing the industrial take-off, the economy misses a window of opportunity, and the technological take-off is bypassed. In this case, industrialization proceeds without entry into high-tech industries, and the economy ends up with lower income than otherwise. Trade policy is an effective instrument to trigger industrialization.

The Hierarchical Structure of the Firm: A Geometric Perspective

This paper incorporates hierarchical structure into the neoclassical theory of the firm. Firms are hierarchical in two respects: the organization of workers in production and the wage structure. The firm’s hierarchy is represented as a sector of a circle, where the radius represents the hierarchy’s height, the width of the sector represents the breadth of the hierarchy at a given height, and the angle of the sector represents span of control. A perfectly competitive firm chooses height and width, as well as capital, in order to maximize profit. We analyze the short run and long run impact of changes in scale economies, input substitutability, and input and output prices on the firm’s hierarchical structure. We find that the firm grows as the specialization of its workers increases or as its output price increases relative to input prices. The effect of changes in scale economies is contingent on the price of output. The model also brings forth an analysis of wage inequality within the firm, which is found to be independent of the firm’s hierarchical organization of workers, and only depends on the firm’s wage schedule.Theory of the firm; Hierarchical structure; Economies of scale; Input substitutability; Inequality

The hierarchical structure of a firm: a geometric approach

This paper develops a novel, geometric approach to modelling a firm's hierarchical structure. We model the firm''s hierarchy as the sector of a circle, in which the radius represents the height of the hierarchy and the angle of the sector represents the width of the hierarchy. The firm then chooses the height and angle in order to maximise profit. We analyse the impacts of changes in economies of scale, input substitutability and labour productivity on the firm''s hierarchical structure. We find that the firm will unambiguously become more hierarchical as specialisation of its workers increases or as its output price increases. The effect of changes in scale economies is contingent on the level of task specialisation and output price.

Industrial development and international trade: Technological capabilities and collusion.

This thesis presents a theoretical analysis of industrialization. Two kinds of models are developed. The first type incorporates the following features: 1) Oligopohstic behaviour and strategic interaction. 2) Endogenous technological capability and market structure. 3) A general equilibrium framework. 4) A dualistic structure (characteristic of many developing countries). 5) Asymmetries in initial conditions. In part I, chapter 2 develops the benchmark model in autarky. Chapter 3 opens the economy. Under symmetry, trade is welfare improving. Asymmetric initial conditions imply that a backward nation may not benefit from trade with an advanced country, while the advanced nation will always benefit from trade with the backward nation. Subsidizing technological capability allows the backward economy to catch-up with the advanced economy's wage. The subsidy is welfare improving if funded with a lump-sum tax. In part II we extend the models from part I to variable intensity of competition. Chapter 4 does this for autarky, chapter 5 for the open economy. We encompass intensities of competition ranging from individual to joint profit maximization. In the open economy, intensities of competition lower than individual profit maximization generate a separating surface for the wage rate. Below the surface, trade yields a higher wage rate than autarky (the reverse holds above the surface). The separating surface provides a positive basis for differential trade policy between industries. The second type of model (chapter 6) is a Big-Push framework with multiple equilibria, and industrialization refers to the transition between these. A Cournot (upstream) industry features endogenous technological capability and vertical linkages to a competitive (downstream) industry. The wage rate depends on whether the economy can fit through a 'window of opportunity' whilst on the transition path. One of the central results is that if the wage rate grows too steeply, the window will be missed and the economy may end up in a lower (post transition) level of development

The Hierarchical Structure of a Firm: A Geometric Approach

This paper develops a novel, geometric approach to modelling a firm's hierarchical structure. We model the firm's hierarchy as the sector of a circle, in which the radius represents the height of the hierarchy and the angle of the sector represents the width of the hierarchy. The firm then chooses the height and angle in order to maximise profit. We analyse the impacts of changes in economies of scale, input substitutability and labour productivity on the firm's hierarchical structure. We find that the firm will unambiguously become more hierarchical as specialisation of its workers increases or as its output price increases. The effect of changes in scale economies is contingent on the level of task specialisation and output price

Límites de exposición ocupacional y ambiental: una visión crítica

In the last years, there have been a large development of national, regional and international environment politics, wich include pollution reduction and preservation of the nature resources, as well as promotion for life quality enhancement. The environmental pollution control, and specially the establishment of standards, generate difficult challenges for society, due to the different perspectives in the distinct social sectors, in relation to whichit would be the government's role to guarantee the citenzens' protection and which is the cost. In other terms the main problem is who'll pay the consequences of industrialization process. The stablishment of the criteria for environment and occupational exposure to chemicals substances, has suffered evolutions with the development of the process in scientific Knowledge. Maybe, the most important chance which it has suffered, is the divition into two clearly different stages. The first one is the evaluation of scientific information, and the second one is the politic-administrative decision for the establishment of exposure limits. Previously, this was a process without any clear difference between both moments, originating doubts and conflicts without solution, since most of the times, the technician's of big companies were who had mores interference in the stablishment of the limits value.En los últimos años ha habido un considerable desarrollo de las políticas ambientales tanto nacionales, como regionales e internacionales. El alcance de estas políticas incluye tanto la reducción de la contaminación y la preservación de los recursos naturales, como la promoción del mejoramiento de la calidad de vida. El control de la contaminación ambiental, y en particular el establecimiento de los estándares, genera difíciles retos a la sociedad debido a la existencia de diferentes puntos de vistas de los distintos sectores en relación a cuál debería ser el rol de los gobiernos para garantizar la protección de los ciudadanos y cuál es el costo. En última instancia esta discusión lo que plantea es el problema de quién genera o produce el riesgo y quién pagará los costos, en otras palabras, el problema central es quién pagará las consecuencias (en términos de salud y deterioro de las condiciones de vida) del proceso de industrialización. El establecimiento de los criterios de exposición ambiental y ocupacional a sustancias químicas, ha venido evolucionando con el desarrollo del proceso de conocimiento científico. Quizás el cambio mas importante que ha sufrido este proceso es la separación en dos etapas claramente diferenciadas. Una primera es el momento de la evaluación científica de la información, y la segunda el momento de la decisión político-administrativa para el establecimiento del límite de exposición. Anteriormente, y principalmente para los límites de exposición ocupacional, éste era un proceso donde no existía una clara diferenciación entre ambos momentos, lo cual generaba dudas y conflictos de interés no resueltos, debido a que la mayoría de las veces, eran los técnicos de las grandes compañías quienes tenían mayor ingerencia en el establecimiento de los valores límites

Límites de exposición ocupacional y ambiental: una visión crítica

In the last years, there have been a large development of national, regional and international environment politics, wich include pollution reduction and preservation of the nature resources, as well as promotion for life quality enhancement. The environmental pollution control, and specially the establishment of standards, generate difficult challenges for society, due to the different perspectives in the distinct social sectors, in relation to whichit would be the government's role to guarantee the citenzens' protection and which is the cost. In other terms the main problem is who'll pay the consequences of industrialization process. The stablishment of the criteria for environment and occupational exposure to chemicals substances, has suffered evolutions with the development of the process in scientific Knowledge. Maybe, the most important chance which it has suffered, is the divition into two clearly different stages. The first one is the evaluation of scientific information, and the second one is the politic-administrative decision for the establishment of exposure limits. Previously, this was a process without any clear difference between both moments, originating doubts and conflicts without solution, since most of the times, the technician's of big companies were who had mores interference in the stablishment of the limits value.En los últimos años ha habido un considerable desarrollo de las políticas ambientales tanto nacionales, como regionales e internacionales. El alcance de estas políticas incluye tanto la reducción de la contaminación y la preservación de los recursos naturales, como la promoción del mejoramiento de la calidad de vida. El control de la contaminación ambiental, y en particular el establecimiento de los estándares, genera difíciles retos a la sociedad debido a la existencia de diferentes puntos de vistas de los distintos sectores en relación a cuál debería ser el rol de los gobiernos para garantizar la protección de los ciudadanos y cuál es el costo. En última instancia esta discusión lo que plantea es el problema de quién genera o produce el riesgo y quién pagará los costos, en otras palabras, el problema central es quién pagará las consecuencias (en términos de salud y deterioro de las condiciones de vida) del proceso de industrialización. El establecimiento de los criterios de exposición ambiental y ocupacional a sustancias químicas, ha venido evolucionando con el desarrollo del proceso de conocimiento científico. Quizás el cambio mas importante que ha sufrido este proceso es la separación en dos etapas claramente diferenciadas. Una primera es el momento de la evaluación científica de la información, y la segunda el momento de la decisión político-administrativa para el establecimiento del límite de exposición. Anteriormente, y principalmente para los límites de exposición ocupacional, éste era un proceso donde no existía una clara diferenciación entre ambos momentos, lo cual generaba dudas y conflictos de interés no resueltos, debido a que la mayoría de las veces, eran los técnicos de las grandes compañías quienes tenían mayor ingerencia en el establecimiento de los valores límites

El trabajo como determinante de la salud

The study of working process and health is not a new preoccupation. From the last century, and owing to the life conditions and health changes originated by the industrial revolution; distinct studious, identified with the workers cause, began to evaluate its impact on the working population´s health. Since this time the conflict is stated within two ways to approach the workers health problem. One, that began to suspect the worker´s health problems were related to the way they inserted in the productive process; and the other one centered its action on two flowing: the first one granted the Cure medical attention, and the second, which considered the working environmental on function of specific risks, fundamentally the denominated physical and chemical risks. It´s in the sixties decade, with the frame of a global process apogee for social fights and the doubt of capitalist organization, when the position that health is closely related with the work process takes over, and this also generates room for exploitation, in this sense the workers´ health is understood as a concrete expression of the exploitation, and the fight for the workers´ health and as a field of the anti capitalist fight. The present assay seeks to systemize the developed advances from the collective health perspective related with health fact, the work and sickness in the frame of social relations production.El estudio del proceso de trabajo y la salud no es una preocupación reciente. Desde el siglo pasado, y debido a los cambios que sobre las condiciones de vida y salud de los trabajadores generó la Revolución Industrial, diversos estudiosos identificados con la causa de los trabajadores, comenzaron a evaluar el impacto de la misma sobre la salud de la población trabajadora. Desde esta época se plantea el conflicto entre dos maneras de abordar los problemas de la salud de los trabajadores. Una, que comenzaba a vislumbrar que los problemas de la salud de los trabajadores estaban vinculados a la manera como los trabajadores se insertaban en el proceso productivo; y la otra que centraba su acción en dos vertientes: la primera que privilegiaba la atención médica curativista, y la segunda, que consideraba al ambiente de trabajo en función de riesgos específicos, fundamentalmente los denominados factores de riesgos físicos y químicos. Es en la década de los sesenta, en el marco de un proceso global de auge de las luchas sociales y del cuestionamiento de la organización capitalista del trabajo, cuando de nuevo cobra fuerza la posición que plantea que la salud tiene una estrecha relación con el proceso de trabajo en tanto que espacio concreto de explotación y en este sentido, entiende a la salud obrera como expresión concreta de esa explotación, y la lucha por la defensa de la salud obrera como un campo privilegiado de la lucha anticapitalista. El presente ensayo busca sistematizar los avances desarrollados desde la perspectiva de la Salud Colectiva en relación al tema de la salud, el trabajo y la enfermedad en el marco de las relaciones sociales de la producción