Market Size, Trade, and Productivity Melitz, Marc J., and Gianmarco I. P. Ottaviano. 2008. Подготовила Растворцева Светлана Белгородский...

Market Size, Trade, and Productivity

Melitz, Marc J., and Gianmarco I. P. Ottaviano. 2008.

Подготовила Растворцева СветланаБелгородский государственный университет

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• A monopolistically competitive model of trade• Firm heterogeneity in terms of productivity

differences• Endogenous differences in the toughness of

competition across markets – in terms of the number and average productivity of comp. firms

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Market Size, Trade, and Productivity

• Closed Economy• Open Economy• Trade Liberalization

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1. Closed Economy1.1. Preferences and DemandConsider an economy with L consumers, each supplying one unit of labor. All consumers share the same utility function given by

(1)

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1. Closed Economy1.1. Preferences and Demand Assume The inverse demand for each variety i is then given by

(2)

(3)

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1. Closed Economy1.1. Preferences and Demand

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1. Closed Economy1.2. Production and Firm Behavior

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1. Closed Economy1.2. Production and Firm Behavior

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1. Closed Economy1.3. Free Entry Equilibrium

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1. Closed Economy1.4. Parametrization of Technology

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(13)(14)

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1. Closed Economy1.4. Parametrization of Technology

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1. Closed Economy1.4. Parametrization of Technology

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1. Closed Economy1.4. Parametrization of Technology

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1. Closed Economy1.5. A Short-Run Equilibrium

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1. Closed Economy1.5. A Short-Run Equilibrium

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2. Open Economy

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2. Open Economy

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2. Open Economy

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2. Open Economy

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2. Open Economy2.1. Free Entry Condition

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2. Open Economy2.1. Free Entry Condition

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2. Open Economy2.2. Prices, Product Variety, and Welfare

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2. Open Economy2.2. Prices, Product Variety, and Welfare

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2. Open Economy2.3. Number of Entrants, Producers, and Exporters

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2. Open Economy2.4. Reciprocal Dumping and Arbitrage Opportunities

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2. Open Economy2.5. The Impact of Trade2.6. Market Size Effects

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2. Open Economy2.7. The Open Economy in the Short-Run

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2. Open Economy2.7. The Open Economy in the Short-Run

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2. Open Economy2.7. The Open Economy in the Short-Run

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3. Trade Liberalization3.1. Bilateral Liberalization3.2. Unilateral Liberalization3.3. Preferential Liberalization

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3. Trade Liberalization3.3. Preferential Liberalization

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3. Trade Liberalization3.3. Preferential Liberalization

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3. Trade Liberalization3.3. Preferential Liberalization

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3. Trade Liberalization3.3. Preferential Liberalization

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Спасибо!

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