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Showing papers in "Journal of International Economics in 1983"


Journal ArticleDOI
TL;DR: The authors compared the performance of various structural and time series exchange rate models, and found that a random walk model performs as well as any estimated model at one to twelve month horizons for the dollar/pound, dollar/mark, dollar /yen and trade-weighted dollar exchange rates.

3,621 citations


Journal ArticleDOI
TL;DR: This paper developed a model in which the rivalry of oligopolistic firms serves as an independent cause of international trade and showed how such rivalry naturally gives rise to "dumping" of output in foreign markets, and showed that such dumping can be "reciprocal" -that is, there may be two-way trade in the same product.

1,072 citations


Journal ArticleDOI
TL;DR: In this paper, several models are presented in which factor mobility leads to an increase in the volume of world trade and share the common characteristic that the basis for trade is something other than differences in relative factor endowments.

574 citations


Journal ArticleDOI
TL;DR: In this article, the authors conclude that it is uncertain percentage changes in the real exchange rate that are risky in international trade, by assuming real profit maximization, and uncertain prices as well as exchange rates.

413 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined the effect on national welfare of an endogenously determined inflow of foreign capital, in the context of a well-known model with sector-specific inputs, both for the case of unrestricted international trade and investment and in the presence of a tariff.

142 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examine how factor intensity rankings between industries and the economywide asymmetry in the degree of factor substitution combine to influence the manner in which changes in relative commodity prices affect the factoral distribution of income.

114 citations


Journal ArticleDOI
TL;DR: Brecher as mentioned in this paper showed that the Jones policy problem is a third-best, rather than a second-best problem, as generally believed, and that if only one of the tariff and capital mobility taxes can be used, it is generally possible to improve welfare further by admitting an altogether different, domestic policy instrument: namely a production or consumption tax-cum-subsidy.

103 citations


Journal ArticleDOI
James A. Hanson1
TL;DR: In this article, the condition under which devaluation reduces demand for home goods, and thus aggregate output if real exports are fixed, basically depends on the sign of one plus the weighted sum of the price elasticities of demand for imported consumer goods and of derived demand for inputs.

102 citations


Journal ArticleDOI
Makoto Yano1
TL;DR: In this article, the standard trade model with three countries, and allowing for substitutability in both production and consumption, was used to demonstrate that a country may gain by giving a transfer, that the receiver may lose, and that these two phenomena may appear at the same time.

93 citations


Journal ArticleDOI
TL;DR: In this paper, the authors developed a general approach to factor mobility in two-sector, general equilibrium models and showed that the degree of capital mobility, measured by the percentage loss in efficiency that is incurred in transferring the marginal unit of capital, is an important determinant of the response of factor prices and industry outputs to changes in commodity prices and factor endowments.

88 citations


Journal ArticleDOI
TL;DR: In this paper, the authors present a two-good growth model of two market economies in which economic agents optimize with perfect foresight, and stress the importance of asset markets as the linkage that transmits disturbances both internationally and intertemporally.

Journal ArticleDOI
TL;DR: In this article, the authors report calculations of optimal tariffs both with and without retaliation in a sequence of 2 × 2 trade models, and the major conclusion is that these models confirm the suggestion from casual inspection of reported trade elasticities that current levels of tariff protection are some distance from optimal tariffs and that the margin for tariff retaliation is potentially large.

Journal ArticleDOI
T. N. Srinivasan1
TL;DR: In the 1970s, the collapse of the Bretton-Woods fixed-exchange rate system and OPEC's success in raising petroleum prices had a major impact on world trade and factor movements as mentioned in this paper.

ReportDOI
TL;DR: In this paper, the authors present a two-good growth model of two market economies in which economic agents optimize with perfect foresight, and stress the importance of asset markets as the linkage that transmits disturbances both internationally and intertemporally.

Journal ArticleDOI
TL;DR: In this article, the authors prove rigorously V.K. Ramaswami's proposition that in bilateral trade between two countries sharing the same technology represented by a strictly concave production function with positive marginal productivities of capital and labor, the policy-active country can gain more by importing monopsonistically the relatively scarce factor than by placing monopolistic restrictions on the export of the relatively abundant one.

Journal ArticleDOI
TL;DR: This paper developed three models for the determination of foreign exchange futures prices under fixed exchange rates and expectations of devaluation and showed that certain characteristics of futures prices behavior that have been used as proof of inefficiency may be present even if the market is efficient.

Journal ArticleDOI
TL;DR: In this article, the authors examined tariff equilibria in a static two country trade model under a general class of conjectures regarding foreign retaliation and showed that when marginal propensities to consume imports are sufficiently small, increased expectation of retaliation results in lower equilibrium tariffs for both countries.

Journal ArticleDOI
TL;DR: In this article, the second-best commercial policy for an open economy, within the two-commodity two-factor model of a two-country world, was investigated, where the first-best strategy is known to require taxes (subsidies) on both international trade in commodities and foreign investment via capital movements.



Journal ArticleDOI
TL;DR: In this paper, a simple model of a small open economy which is open to both commodity trade and foreign investment of a sector-specific kind, and which exhibits the phenomenon of crosshauling, or reverse flows of internationally mobile capital in two different sectors.

Journal ArticleDOI
TL;DR: In this paper, the authors simplify the theory of international trade with foreign investment, while concentrating on significant gaps in the analysis of the globally diversified case, where both countries of the two-commodity two-factor model remain incompletely specialized.

Journal ArticleDOI
TL;DR: In this article, conditions under which reductions in distortions in one market improve national welfare despite the presence of distortions in another market are investigated, where the specific distortions are a differential between capital rentals and a rigid urban wage.

Journal ArticleDOI
TL;DR: In this paper, the authors examined the impact of a tariff on a spatial duopoly in which the domestic and foreign producers are oligopolistically interdependent and both domestic and international transportation costs are significant.

Journal ArticleDOI
TL;DR: In this paper, the authors generalized the two-sector production model to accommodate any degree of mobility in the two factors and provided a convenient framework for exploring the manner in which factor mobilities interact with factor intensities in resolving a number of basic issues in neoclassical trade theory.

Journal ArticleDOI
TL;DR: The authors derived the demand for foreign bonds in a simple general equilibrium model in which the exchange rate is perfectly correlated with the terms of trade and showed that the demand can be a decreasing function of imports if the degree of relative risk tolerance is smaller than one when the consumption expenditure elasticity of imports exceeds one.

Journal ArticleDOI
TL;DR: In this article, the authors show that in a framework of many goods and factors, inferences about the relative abundance of a particular factor cannot be made by looking at the signs of the regression coefficients unless very stringent requirements are met.

Journal ArticleDOI
TL;DR: In this article, the authors investigated the effect of a public intermediate good on the Stolper-Samuelson, Samuelson-Rybczynski, Heckscher-Ohlin, and factor-price equalization theorems, and showed that there is a tendency for trade to equalize prices.

Journal ArticleDOI
TL;DR: If capital is mobile internationally this reasoning may be inappropriate, as emigration of unskilled labor out of the less developed country provides an incentive for capital to leave the country, too.

Journal ArticleDOI
TL;DR: In this paper, a generalized version of the traditional two-sector, two-factor model underlying the Heckscher-Ohlin theory is considered, and the main focus is on how nonhomotheticity in this sector's technology affects the dual equilibrium relationships between factor and commodity relative prices.