Showing papers in "Journal of International Economics in 1993"

TL;DR: This article examined the possibility that non-traded goods may account for several striking features of international macroeconomic data: large, persistent deviations from purchasing power parity, small correlations of aggregate consumption fluctuations across countries, and substantial international real interest rate differentials.

TL;DR: In this article, Turkish data spanning the course of a dramatic trade liberalization was used to test the notion that intensified international competition forces domestic firms to behave more competitively using Turkish data.

TL;DR: In this paper, a utility-based criterion is used to make asset allocation decisions, where underestimates of population variances lead to lower expected utility than equivalent overestimates, unlike standard criteria such as mean squared error.

TL;DR: In this article, a stochastic, general equilibrium model of the world economy is developed to analyze the contribution of trade interdependence to international business cycles, and the implications of the model using data from ten major industrial countries and a variety of detrending techniques to calculate the cyclical component of output.

TL;DR: In this paper, the relevance of long-run purchasing power parity (PPP), which allows for measurement errors, during the recent floating exchange rate period was examined using maximum likelihood procedure, and significant evidence favorable to long run PPP was found.

TL;DR: In this paper, the authors used a monopolistic competition model and cross-country data on trade barriers, trade flows, and manufacturing production to estimate the import-reducing effects of trade barriers.

TL;DR: This article showed that the high correlation between savings and investment, the low cross-country correlation between consumption growth rates and the home bias in investment portfolios are consistent with complete financial markets when agents face stochastic fluctuations in the output of non-traded goods.

TL;DR: In this paper, the authors consider the formation of a free-trade area (FTA) between countries where tariffs against non-members are set endogenously and show that such tariffs will fall consequent to the creation of FTAs and trade diversion is likely to become trade creation.

TL;DR: In this article, the authors used a Bertrand differentiated products model to show that pass-through should be high for exporters based in a country with a very large share of total destination market sales.

TL;DR: In this paper, a model of endogenous growth and trade is developed that extends the continuum Ricardian model of Dornbusch et al. (1977) to a dynamic framework, generalizing the quality ladders approach of Grossman and Helpman (1991a, b), and complements the work of Krugman (1987) on dynamic Ricardians.

TL;DR: In this paper, it is shown that anti-dumping policy may be in the public interest for the importing country, via lowering the probability of a VER and also increasing the probability for free trade.

TL;DR: This article showed that if the marginal utility of real consumption is strongly increasing in the habitual standard of living, then the Harberger-Laursen-Metzler effect holds, and a terms of trade deterioration reduces savings.

TL;DR: In this paper, the authors provide a framework for evaluating how market participants beliefs about foreign exchange target zones change as they learn about central bank intervention policy. And they find that the market's views of intervention target zones would have varied quite a bit over time even over this relatively stable period.

TL;DR: In this paper, the authors consider the various trade-offs one faces in designing an exchange-rate system and the amount of reserves which the central banks must have on hand in order to forestall a speculative attack and make the system sustainable.

TL;DR: This article examined the relation between the trade balance and the terms of trade in a two-country dynamic stochastic exchange economy with complete markets and found that a positive association does not require persistent shocks or non-constant rates of time preference.

TL;DR: In this paper, the authors examine the effect of alternative standards for intellectual property protection and show that discriminatory protection may not increase (and may decrease) domestic R&D while uniform protection may increase domestic R & D.

TL;DR: The authors analyzes a game of strategic trade policy between governments who may choose among quantity controls, subsidies, and nonintervention as policy instruments, and derives conditions under which non-intervention is strictly preferred to the alternative instruments.

TL;DR: The authors empirically show that cross-ownership can weaken the effectiveness of strategic trade policy in sectors with above-average expected profitability, scope for strategic investments, and barriers to rent dissipation.

TL;DR: In this article, the authors examine quantitative international investment barriers in a general equilibrium model and show that this induces lending and borrowing, which in turn instroduces a hedging motive against shifts in the interest rate.

TL;DR: In this paper, arguments for strategic trade intervention with Cournot duopolists are reconsidered in a model where domestic firms can lobby for increased subsidies, and an export subsidy may not improve national welfare if lobbying costs are included.

TL;DR: In this article, the authors consider a trade policy game in which the choice of policy (subsidy or quota) and time of implementation [before (commit) or after (delay) observing the random demand intercept] is endogenously determined.

TL;DR: In this article, the authors propose a valuation formula that provides: (i) the price at which a buy-back of the debt, on the secondary market, is advantageous to the country; (ii) the value to creditors of having the flows of payment guaranteed against factors that hinder a country in servicing its debt; and (iii) the degree of tradeoff between growth of payments and levels of payments.

TL;DR: In this paper, the authors used currency futures prices to test the joint null hypotheses of rational expectations and absence of a time-varying risk premium in the foreign exchange market, and they found no linear predictability in the logarithm of futures price changes, either using its own past or past interest differentials.

TL;DR: In this paper, a dynamic general equilibrium model of international research and development competition based on the Heckscher-Ohlin structure of production is developed. But the model is not suitable for the case of large-scale R&D expenditures and the rate at which firms discover new superior products.

TL;DR: In this paper, four channels of international budgetary and monetary policy transmission are analyzed within the context of nominal wage sluggishness, based on capital gains on holdings of foreign assets, and the elasticity of intertemporal substitution is less or greater than one.

TL;DR: In this article, the authors investigate the role of U.S. government purchases in explaining recent net export behavior and conclude that government purchases play some role in explaining U. S. net export behaviour.

TL;DR: In this paper, an information asymmetry concerning technology type and the cost of operating across national boundaries interact with location considerations to determine whether international technology transfer occurs via the export of goods, subsidiaries, or licensing.

TL;DR: In this paper, empirical estimates of the specific-factors model are reported, assuming that the relative supplies of the two types of capital are constant through time, the model can be estimated with aggregate data even though the sector specific capital stocks are not observable.

TL;DR: In this paper, the optimal exchange rate regimes for small open economies with economy-wide wage setting and privately optimal wage indexation schemes are analyzed, and a fully discretionary exchange rate regime (a managed float) offers flexibility while a credible fixed exchange-rate regime offers price stability.

TL;DR: In this article, the authors present an international trade model with exhaustible resources and characterize the general equilibrium properties, which leads to new insights compared with a partial equilibrium approach, and argue that there are good reasons for a general equilibrium analysis.