Behavioral characteristics of mrio-based global age models with variable elasticity of substitution between varieties
| Autor: | Oyamada, Kazuhiko |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: |
firm heterogeneity
variable elasticity of substitution JEL:F12 - Models of Trade with Imperfect Competition and Sca … JEL:L11 - Production Pricing and Market Structure • Size D … applied general equilibrium monopolistic competition multi-regional input-output JEL:C68 - Computable General Equilibrium Models JEL:D58 - Computable and Other Applied General Equilibrium M … |
| Zdroj: | IDE Discussion Paper = IDE Discussion Paper. 881 |
| Popis: | This paper explores the indirect spillover effects of trade-related policies that affect welfare gains/losses via variety adjustments mentioned as by Fujita, Krugman, and Venables (2000), where access to a greater variety of intermediate commodities may reduce the costs of production using those intermediates. Using an applied general equilibrium model that incorporate direct cross-border linkages between producers and importing agents, we examine what happens when the elasticity of substitution between varieties from different sources is endogenized. Experimental simulations using the model reveal that the efficiency-enhancing effects of smoother resource allocations (substitution) may work more effectively than the cost-reducing effects of variety a djustments suggested by Fujita et al. (2000). A production sector that exhibits increasing returns to scale under m onopolistic competition may serve as the main engine for accelerating the efficiency-enhancing effects to remarkable levels. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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