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Market Size, Trade, and Productivity

Market Size, Trade, and Productivity. Melitz, Marc J., and Gianmarco I. P. Ottaviano. 2008. Подготовила Растворцева Светлана Белгородский государственный университет. A monopolistically competitive model of trade Firm heterogeneity in terms of productivity differences

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Market Size, Trade, and Productivity

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

  2. 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

  3. Market Size, Trade, and Productivity • Closed Economy • Open Economy • Trade Liberalization

  4. 1. ClosedEconomy1.1. Preferencesand DemandConsider an economy with L consumers, each supplying one unit of labor.All consumers share the same utility function given by (1)

  5. 1. Closed Economy1.1. Preferencesand Demand Assume The inverse demand for each variety i is then given by (2) (3)

  6. 1. Closed Economy1.1. Preferencesand Demand (4) (5)

  7. 1. Closed Economy1.2. Productionand Firm Behavior (6)

  8. 1. Closed Economy1.2. Productionand Firm Behavior (7) (8) (9) (10) (11)

  9. 1. Closed Economy1.3. Free Entry Equilibrium (12) (13)

  10. 1. Closed Economy1.4. Parametrization of Technology (14) (13) (15)

  11. 1. Closed Economy1.4. Parametrization of Technology (16)

  12. 1. Closed Economy1.4. Parametrization of Technology

  13. 1. Closed Economy1.4. Parametrization of Technology (17)

  14. 1. Closed Economy1.5. A Short-Run Equilibrium (17)

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

  16. 2. Open Economy (18)

  17. 2. Open Economy

  18. 2. Open Economy (19)

  19. 2. Open Economy (20) (21)

  20. 2. Open Economy2.1. Free Entry Condition (22)

  21. 2. Open Economy2.1. Free Entry Condition (23)

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

  23. 2. Open Economy2.2. Prices, Product Variety, and Welfare (24) (25)

  24. 2. Open Economy2.3. Number of Entrants, Producers, and Exporters (26)

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

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

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

  28. 2. Open Economy2.7. The Open Economy in the Short-Run (27)

  29. 2. Open Economy2.7. The Open Economy in the Short-Run (28)

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

  31. 3. Trade Liberalization3.3. Preferential Liberalization

  32. 3. Trade Liberalization3.3. Preferential Liberalization

  33. 3. Trade Liberalization3.3. Preferential Liberalization

  34. 3. Trade Liberalization3.3. Preferential Liberalization

  35. Спасибо!

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