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Intra-industry trade and labor costs: The smooth adjustment hypothesis

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  • Manuel A. Ferreira
  • José A. Filipe
  • Manuel Coelho
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    Abstract

    We study a situation in which, owing to the exhaustion of non-renewable energy sources, conventional motor vehicles will turn out of use. We consider two scenarios: recycling or dismantling these motor vehicles. M|G|∞ queue system is used to study the process. Through it, we conclude that if the rate of dismantling and recycling of motor vehicles is greater than the rate at which they become idle, the system will tend to get balanced. The model allows also performing a brief study about the recycling or dismantling economic interest.

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    File URL: http://pascal.iseg.utl.pt/~depeco/wp/wp182009.pdf
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    Bibliographic Info

    Paper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2009/18.

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    Date of creation: Mar 2009
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    Handle: RePEc:ise:isegwp:wp182009

    Contact details of provider:
    Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
    Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC

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