Three Essays in International Economics and Industrial Organization PDF Download

Author: Marjan Orang
Publisher:
ISBN:
Category :
Languages : en
Pages : 68

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Author: Shu Deng
Publisher:
ISBN:
Category :
Languages : en
Pages : 179

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There are three main chapters in the dissertation which fall in the areas of industrial organization and international economics. After the introduction and the literature review, I present two different models that highlight how the degree of substitutability between differentiated products on a market affects a new entrant's entry decisions. I further extend the benchmark model to discuss the implications of the government trade policy on the competition strategies. The last chapter investigates how the bilateral trade flows in various industries between the United States and China respond to Yuan/Dollar exchange rate fluctuations and a few other key variables. In the second chapter, I extend the Singh and Vivies (1984) model and the Hackner (2000) model by allowing for a multi-product duopoly, a domestic incumbent and a foreign entrant, with asymmetric costs in producing two differentiated products: high- and low-quality. If they engage in Cournot competition, in the subgame perfect Nash equilibrium, the foreign entrant will choose to supply both products when two varieties are more heterogeneous. If two varieties are more homogeneous, the foreign entrant tends to supply only one product. After extending the model to consider the tariff imposed on foreign imports, the simulation results suggest that, to increase domestic welfare, the government should allow cost-effective foreign entrants to enter, but keep cost-ineffective ones out of the domestic market. In the third chapter, I provide a thorough analysis of the Bertrand model with a setup that is similar to the Cournot model. When firms compete on prices, the SPNE differs significantly from that of the Cournot model. Depending on the relative marginal cost between two firms, there are circumstances under which the foreign entrant would choose to only enter into the low- or the high-quality market regardless of the degree of substitutability between two varieties. Furthermore, when the domestic government imposes a tariff on the foreign imports, the foreign entrant's entry decision changes with the tariff level. In the last chapter, unlike the existing literature which mainly look at the relationship between the exchange rate and the trade balance at the aggregate level, I attempt to investigate the short-run and the long-run impact of the Yuan/Dollar exchange rate on the US trade balance at the commodity level using a new methodology, the Autoregressive Distributed Lag Bounds Testing approach. As most articles found no short-run and long-run relationship between the exchange rate and the trade balance at the aggregate level ("aggregation bias"), I argue that different commodities may respond to the exchange rate fluctuations differently. Therefore, this study would offer us a better understanding on which US industries are more vulnerable to the Yuan/Dollar exchange rate fluctuations and which ones are strong players against Chinese competitors. In addition, I further explore other possible contributors to the US trade deficit such as income levels, China FDI inflow, and the US FDI outflow.

Author: Yuka Ohno
Publisher:
ISBN:
Category : Foreign trade regulation
Languages : en
Pages : 184

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Author: Ricardo Ribeiro
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Category :
Languages : en
Pages :

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Author: Xin Zhao
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Category :
Languages : en
Pages : 115

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This dissertation consists of three studies on trade, industrial organization, and environmental economics. The first study investigates endogenous cartel formation with market entry and firm heterogeneity. We show why large firms do not join a cartel in some industries and choose to compete rather than cooperate with a cartel. We illustrate that, under certain conditions, only firms with intermediate productivity benefit from joining a cartel; and low-productive firms cannot compete efficiently for production quota in the cartel and hence choose to stay out. High-productive firms prefer to stay out because building excess capacity in cartel lowers their profits.

Author: Dennis C. Mueller
Publisher: Springer Science & Business Media
ISBN: 1461555590
Category : Business & Economics
Languages : en
Pages : 397

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Competition, Efficiency and Welfare contains a collection of papers in honor of Manfred Neumann. This collection was prepared as a tribute to a teacher and scholar, whose accomplishments have enriched various fields of economics. The magnitude of his interests is reflected in the breadth of topics covered in this volume: industrial economics, competition policy and related topics. However, if one unifying principle runs through Manfred Neumann's work, it is the belief in the power of competition. Born on May 16, 1933, Manfred Neumann studied economics at the University of Cologne. He graduated in 1960. In 1969 Manfred Neumann was appointed Professor of Economics at Nürnberg University. He was Dean of the Faculty of Economics and Social Sciences of the University of Erlangen-Nürnberg, President of the European Association for Research in Industrial Economics (EARIE) and Chairman of Industrial Organization Study Group of the Verein für Sozialpolitik. Most of his professional career has been spent at Nürnberg, where he has helped to make the Economic Institute one of the leading research centers in Industrial Organization. He has also been involved in various advisory activities. The volume contains 18 essays. The first twelve are grouped into four categories: Innovation and R&D (Part I), Cartels (Part II), Mergers and Merger Policy (Part III), and Methodological Issues in Industrial Organization (Part IV). These papers fall within the bounds of industrial economics, which has been Manfred Neumann's primary research interest throughout his career. Part V includes two papers on theories of international trade, which has been a recurring topic of interest for Manfred Neumann through the years. The last three papers look at broader policy and macroeconomic issues. Contributors to this volume include Karl Aiginger, David B. Audretsch, Paul A. Geroski, Stephen Martin and Dennis Mueller.

Author: Gabor Palinko
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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This dissertation is comprised of three chapters in industrial organization, environmental economics and energy economics. In Chapter 2, I study carbon dioxide emission abatement technology for industries participating in the world's biggest emissions market, the European Union Emission Trading System (EU ETS). I propose a production and abatement model to motivate the use of emissions as an input in a production function. I build on recent methods of the production function literature and propose an estimator for the production function that is consistent with my model. Using data from the EU ETS and Orbis, I estimate the elasticity of emissions to abatement expenditures for different manufacturing industries. Increasing the share of abatement expenditures of revenues by 1% is expected to reduce emissions by 8% in cement and 67% in chemicals, with other industries between these two extremes. I use the model's implications to translate estimated abatement elasticities to marginal abatement costs at the individual firm level. My findings show enormous differences both within and across industries. My estimates for the 25th, 50th and 75th percentile cement firms are 15, 22 and 36 euro/t respectively. In contrast, these estimates are 22, 48 and 363 euro/t for oil refineries. My findings suggests that, cement, chemicals and power firms are the most likely to decrease emissions as the EU ETS market price rises to levels close to the social cost of carbon.In Chapter 3, I analyze the impact of different policy instruments on the speed of transition to cleaner electricity generation. I develop a non-stationary fully dynamic entry and exit model of power generation. My model includes multiple technologies and hourly spot markets, both key features of the power generation market. I use the calibrated model to analyze the speed of transition away from coal power plants in PJM, the biggest electricity system in the United States. Correcting the negative externality of carbon dioxide emissions requires environmental regulation. My findings highlight the importance of analyzing the full transition path when comparing environmental policy instruments. Policies that lead to similar long-term outcomes induce vastly different transition dynamics. A carbon tax (the efficient instrument) set to $30/ton carbon dioxide is associated with an almost immediate entry of the long-run gas capacity. In contrast, gas entry and coal exit result in a slower and smooth transition. Welfare differences are significant. Both of these instruments improve only marginally on the baseline scenario and do not come close to the improvement possible by the carbon tax.In Chapter 4, I study bidding behavior in the New England frequency regulation market. Since 2015, this product is procured through a multi-dimensional Vickrey-Clarke-Groves (VCG) auction. Bidding under a VCG design is simple since truthful bidding is optimal. However, I find that participants bid higher when relative market power increases. This is indirect evidence against truthful bidding. Taking VCG bids as estimates for true marginal cost can be misleading. A combination of a complicated clearing mechanism and low stakes might prevent players to learn the optimal bidding strategy. My results suggest that switching from a uniform price to a VCG auction does not resolve the underlying strategic complexity.

Author: Tohru Naito
Publisher: Springer
ISBN: 9811056633
Category : Business & Economics
Languages : en
Pages : 364

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This book gives readers the theoretical and empirical methods to analyze applied economics. They are institutional economics, information economics, environmental economics, international economics, financial economics, industrial organization, public economics, law and economics, and spatial economics. Because the chapters of this book deal with current topics in these categories, they are relevant not only to researchers and graduate students but also to policy makers and entrepreneurs. As there is uncertainty about the global economy, it is necessary to consider optimal, efficient behavior to survive in the confused world. The book is organized in three parts. Part 1 deals with institutional economics, information economics, and related topics, approached through game theory. Part 2 focuses on environmental economics, international economics, and financial economics, through a microeconomic or econometric approach. Finally, Part 3 concentrates on public economics, social security, and related fields, through microeconomics or macroeconomics.

Author: John M. Gale
Publisher:
ISBN:
Category :
Languages : en
Pages : 396

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Author: Diego Javier Jimenez Hernandez
Publisher:
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Category :
Languages : en
Pages : 0

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This dissertation contains three essays in development economics and industrial organization. In the first chapter, coauthored with Enrique Seira, we study a nationwide welfare program in Mexico in which the government, in an effort to eliminate hunger, sells milk to households at subsidized rates via a network of thousands of specialized ``ration stores.'' Existing in many countries, such direct-provision programs often appear puzzling to economists, as it seems unlikely that the government would have any comparative advantage over the private market in procuring and distributing milk. To understand direct provision, we develop and estimate an equilibrium model of the market, then use the model to compare this program against natural (budget-neutral) alternatives, such as milk vouchers or unrestricted cash transfers. Using rich household-level panel data and the variation generated by the staggered introduction of new government stores, we show that market power by private milk suppliers is an important concern and that government-sold and privately-sold milk are close (though imperfect) substitutes. Consequently, direct provision plays an important role in the milk market in Mexico by disciplining private-milk prices. Indeed, our results suggest that in the absence of government milk, private market prices would be 3% higher. Moreover, direct provision generates 4% more gains in consumer welfare relative to milk vouchers and 2% more relative to unrestricted cash transfers.In the second chapter, co-authored with Sara G. Castellanos, Aprajit Mahajan, and Enrique Seira, we study expanding financial access (particularly borrowing) to underserved populations. Credit card debt is increasingly common among poor and inexperienced borrowers -- thus de facto a financial inclusion product. However, it remains relatively under-studied. We use detailed card level data and a product that accounted for 15% of all first-time formal loans in Mexico and show that default rates are high and ex-ante unpredictable for new borrowers -- suggesting an important role for ex-post contract terms in limiting risk. However, using a large nationwide experiment we find that default is unresponsive to minimum payment increases, a commonly proposed policy remedy. We provide evidence that the zero result is driven by the offsetting effects of tightened liquidity constraints and lower debt burdens. Surprisingly, we also find muted default responses to large experimental changes in interest rates -- suggesting a limited role for ex-post moral hazard in our context. Finally, we use job displacements to document large effects of unemployment on default, highlighting the centrality of idiosyncratic shocks as a barrier to the expansion of formal credit among poorer populations.In the third and last chapter, coauthored with Joshua J. Kim and Aleksandr Shirkhanyan, we study savings in Armenia, particularly focusing on a unique problem that households in the developing world often face: how to safely store their assets when the value of their local currency is unstable. This instability leads to several complicated decisions households must make, such as how much to save and which currencies to save in. These choices are especially important for households during periods of macroeconomic volatility such as currency depreciations. In this paper, we study how households make such savings decisions following a large currency depreciation in Armenia.