Book
Determinants of equilibrium outcomes and instrument rankings in the presence of strategic interactions between both government and firms : three essays on trade policy
Dec 1989
Abstract
The dissertation explores, theoretically and with simulations, welfare rankings of equilibrium outcomes and of trade policy instruments in the presence of strategic interactions between either governments or foreign oligopolists. The analysis is important because: (1) it provides a game theoretic framework for evaluating the sustainability of trade agreements under GATT and of collusive arrangements between export suppliers to a market; (2) it sets some buildings blocks for rationalizing trade policies and the relative effectiveness of alternative instruments under interdependence in intertemporal environments. One implication of our work is that, in 2-country models, a country that is sufficiently rich in factor endowments or sufficiently efficient in production is likely to prefer a Cournot-Nash or von-Stackelberg tariff policy equilibrium over free trade. In 3-country models, however, small and/or inefficient countries may have similar preferences over equilibria. Another implication of our study is that, substantial differences in factor endowments and/or technological efficiency between countries, small differences in comparative advantage, impatience in time preferences, and restrictions on the choices of instruments are likely to make trade agreements less stable. Finally, our analysis demonstrates that rankings of trade policy instruments are not invariant to the following: temporal nature of models, the nature of technology and market structure, as well as, the strategies chosen by economic agents.
PhD Dissertation from Yale University
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Details
- Title
- Determinants of equilibrium outcomes and instrument rankings in the presence of strategic interactions between both government and firms : three essays on trade policy
- Creators
- Constantinos Syropoulos
- Publisher
- UMI Dissertation Services
- Number of pages
- 259
- Resource Type
- Book
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Identifiers
- 991021807005704721