273 research outputs found
Trade integration and growth
No full textRecent empirical evidence suggests a negative relationship between trade integration and income per capita convergence. We show that moderate reductions in trade posts can generate sizable increases in income per capita divergence in a neoclassical two-country model of trade and growth. The welfare of both countries, however, rises with trade integration due to changes in their consumption time paths. Our setup sheds light on the striking nonlinear growth in the trade share of output since World War II: a linear fall in trade costs over time produces an exponential increase in the trade share of GDP. Concerning the empirical relationship between openness and technological progress, we perform an exercise that cautions against the use of aggregate production functions to obtain Solow residuals: two countries that reduce their trade costs and experience no technological progress are measured to have positive TFP growth rates if an aggregate production function is used for that purpose
Hecksher-Ohlin Business Cycles
No full textThis paper introduces Heckscher-Ohlin trade features into a two-country dynamic stochastic general equilibrium model, and studies the international transmission of productivity shocks through trade in goods. This framework improves upon existing international real business cycle models in that it generates business cycle properties comparable with the empirical evidence regarding the terms of trade and the trade balance. (Copyright: Elsevier)International trade; Heckscher-Ohlin; Business cycles; Productivity shocks
Specialization Patterns and the Factor Bias of Technology
No full textDevelopment accounting exercises based on an aggregate production function find technology is biased in favor of a country’s abundant production factors. We provide an explanation for this finding based on the Heckscher-Ohlin model. Countries trade and specialize in the industries that use intensively the production factors they are abundantly endowed with. For given factor endowment ratios, this implies smaller international differences in factor price ratios than under autarky. Thus, when measuring the factor bias of technology with the same aggregate production function for all countries, they appear to have an abundant-factor bias in their technologies
Can Comparative Advantage Explain the Growth of us Trade?
No full textWe present a dynamic comparative advantage model in which moderate reductions in import tariffs can generate sizable increases in trade volumes over time. A fall in tariffs has two effects. First, for given factor endowments, it raises the degree of specialisation, leading to a larger volume of trade in the short run. Second, it raises the factor price of each country's abundant factor, leading to diverging paths of relative factor endowments and a rising degree of specialisation. A simulation exercise shows that a fall in tariffs produces a disproportional increase in the trade share of output as in the data. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.
The generalized neoclassical growth model
No full textWe construct and numerically solve a dynamic Heckscher-Ohlin model which, depending
on the distribution of production factors in the world and parameter values, allows for
worldwide factor price equalization or complete specialization. We explore the dynamics
of the model under different parameter values, and relate our theoretical results to the
empirical literature that studies the determinants of countries’ income per capita growth
and levels. In general, the model is capable of generating predictions in accordance with
the most important Þndings in the empirical growth literature. At the same time, it
avoids some of the most serious problems of the (autarkic) neoclassical growth model
Neoclassical Growth and Commodity Trade
No full textWe construct a dynamic Heckscher-Ohlin model in which the initial distribution of production factors across economies makes factor price equalization impossible. The model produces dynamics similar to those of the neoclassical growth model. However, free trade prevents identically parameterized economies from achieving identical steady states. Although poor economies grow faster than rich economies during the transition to the steady state, the former do not catch up with the income per capita levels of the latter. A many-country version of the model exemplifies the open-economy neoclassical growth model's ability to produce interesting distribution dynamics of income per capita. (Copyright: Elsevier)International trade; Heckscher-Ohlin; Economic growth; Convergence
Tax cuts in open economies
No full textA reduction in income tax rates generates substantial dynamic responses within the frame-
work of the standard neoclassical growth model. The short-run revenue loss after an in-
come tax cut is partly -- or, depending on parameter values, even completely -- offset
by growth in the long-run, due to the resulting incentives to further accumulate capital.
We study how the dynamic response of government revenue to a tax cut changes if we
allow a Ramsey economy to engage in international trade: the open economy's ability to
reallocate resources between labor-intensive and capital-intensive industries reduces the
negative effect of factor accumulation on factor returns, thus encouraging the economy to
accumulate more than it would do under autarky. We explore the quantitative implica-
tions of this intuition for the US in terms of two issues recently treated in the literature:
dynamic scoring and the Laffer curve. Our results demonstrate that international trade
enhances the response of government revenue to tax cuts by a relevant amount. In our
benchmark calibration, a reduction in the capital-income tax rate has virtually no effect
on government revenue in steady state
Replication Data for:The Systemic Governance Influence of Expectation Documents: Evidence from a Universal Owner
No full textThis is the replication code for the paper. Some of the data is proprietary, but easily available
Tax Cuts in Open Economies
No full textThis is the author accepted manuscript. The final version is available from Elsevier via the DOI in this recordA reduction in capital tax rates generates substantial dynamic responses within the framework of the standard neoclassical growth model. The short-run revenue loss after a tax cut is partly --- or, depending on parameter values, even completely --- offset by growth in the long-run, due to the resulting incentives to further accumulate capital. We study how the dynamic response of government revenue to a tax cut changes if we allow a Ramsey economy to engage in international trade: the open economy's ability to reallocate resources between labor-intensive and capital-intensive industries reduces the negative effect of factor accumulation on factor returns, thus encouraging the economy to accumulate more than it would do under autarky. We explore the quantitative implications of this intuition for the US in terms of two issues recently treated in the literature: dynamic scoring and the Laffer curve. Our results demonstrate that international trade enhances the response of government revenue to tax cuts by a relevant amount. In our benchmark calibration, a reduction in the capital-income tax rate has virtually no effect on government revenues in steady state.CICYTMIUR, Università Boccon
Thermodynamic modeling of creep mechanical behaviour by non linear relaxations
No full textFor some years, Cunat [1] has developed a formalism based on the
thermodynamics of irreversible processes in order to describe the behaviour of
continuous media which are not in the equilibrium state. This thermodynamics of
relaxation has led to a very general modeling called “Distribution of Non-Linear
Relaxations” (DNLR) modeling. This theoretical approach is currently applied in
solid mechanics for various ways and sequences of loading.
In this paper, the application to primary and secondary unidirectional creep is
presented. Only five parameters whose physical meaning is known are necessary. We
analyze the role of each of them and indicate a process of identification from
experimental data
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