This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Are the Anti-globalists right? Gains-from-trade without a Walrasian auctioneer Author info | Abstract | Publisher info | Download info | Related research | Statistics Hector Calvo Pardo
Additional information is available for the following
registered author(s):
We examine whether the "fear" of globalisation can be rationalised by economic theory. To do so, we depart from the standard AD/AS (partial) equilibrium model where the coordinational role of the Auctioneer is substituted by an implementation device based on learning (Guesnerie, 1992). By endowing producers with a learning ability to forecast market prices, individual profit-maximizing production decisions become interdependent in a strategic sense (strategic substitutes). Performing basic comparative statics exercises, we show that "competitiveness" matters in a precise sense: as foreign producers gain access to the home market, home producers' ability to forecast market prices is undermined, so being their ability to forecast the profit consequences of their production decisions. When performing a standard open economy exercise in such a framework, we show that the existence of standard efficiency gains - due to the increase in competition (or spatial price stabilization) - is traded-off against coordination upon the welfare enhancing free-trade equilibrium (stabilizing price expectations). Therefore, we identify a new rationale for an exogenous price intervention in open economy targeting coordination, to allow trading countries to fully reap the benefits from trade. We illustrate this point showing that classical measures evaluating ex-ante the desirability of economic integration (net welfare gains) do not always advice integration between two expectationally stable economies.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number
2005-35.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length:
Date of creation: 2005Date of revision:
Handle: RePEc:pse:psecon:2005-35Contact details of provider: Postal: 48 boulevard Jourdan - 75014 Paris Phone: 01 43 13 63 00 Fax: 01 43 13 63 10 Email: Web page: http://www.pse.ens.fr/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: ().
Keywords: Other versions of this item:
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Krugman, Paul R, 1987.
"Is Free Trade Passe? ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 1(2), pages 131-44, Fall.
[Downloadable!] (restricted)
Xavier Vives, 2001.
"Oligopoly Pricing: Old Ideas and New Tools ,"
MIT Press Books ,
The MIT Press,
edition 1, volume 1, number 026272040x.
Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
"Plants and Productivity in International Trade ,"
Boston University - Institute for Economic Development
105, Boston University, Institute for Economic Development.
[Downloadable!]
Other versions:
Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
"Plants and productivity in international trade ,"
Working Papers
00-08, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Andrew B. Bernard & Jonathan Eaton & J. Bradford Jenson & Samuel Kortum, 2000.
"Plants and Productivity in International Trade ,"
NBER Working Papers
7688, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
"Plants and Productivity in International Trade ,"
Trade Working Papers
161, East Asian Bureau of Economic Research.
[Downloadable!] Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003.
"Plants and Productivity in International Trade ,"
American Economic Review ,
American Economic Association, vol. 93(4), pages 1268-1290, September.
[Downloadable!] Tan, Tommy Chin-Chiu & da Costa Werlang, Sergio Ribeiro, 1988.
"The Bayesian foundations of solution concepts of games ,"
Journal of Economic Theory ,
Elsevier, vol. 45(2), pages 370-391, August.
[Downloadable!] (restricted)
Milgrom, Paul & Roberts, John, 1990.
"Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities ,"
Econometrica ,
Econometric Society, vol. 58(6), pages 1255-77, November.
[Downloadable!] (restricted)
Charles Engel & John H. Rogers, 2004.
"European product market integration after the euro ,"
Economic Policy ,
CEPR, CES, MSH, vol. 19(39), pages 347-384, 07.
[Downloadable!] (restricted)
Novshek, William, 1980.
"Cournot Equilibrium with Free Entry ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 47(3), pages 473-86, April.
[Downloadable!] (restricted)
Honkapohja, Seppo & Evans, George W., 2000.
"Expectations and the stability problem for optimal monetary policies ,"
Discussion Paper Series 1: Economic Studies
2000,10, Deutsche Bundesbank, Research Centre.
[Downloadable!]
Other versions:
Evans, George W & Honkapohja, Seppo, 2001.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
CEPR Discussion Papers
2805, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) George W. Evans & Seppo Honkapohja, 2001.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
University of Oregon Economics Department Working Papers
2001-6, University of Oregon Economics Department, revised 03 Aug 2001.
[Downloadable!] Honkapohja, S. & Evans, G.W., 2000.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
University of Helsinki, Department of Economics
481, Department of Economics.
George W. Evans & Seppo Honkapohja, 2003.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 70(4), pages 807-824, October.
[Downloadable!] (restricted) Hommes, C.H. & Wagener, F.O.O., 2003.
"Does eductive stability imply evolutionary stability? ,"
CeNDEF Working Papers
03-04, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
[Downloadable!]
Charles Engel, 1999.
"Accounting for U.S. Real Exchange Rate Changes ,"
Journal of Political Economy ,
University of Chicago Press, vol. 107(3), pages 507-538, June.
[Downloadable!] (restricted)
Other versions:
Engel, C., 1996.
"Accounting for U.S. Real Exchange Rate Changes ,"
Discussion Papers in Economics at the University of Washington
96-02, Department of Economics at the University of Washington.
Charles Engel, 1995.
"Accounting for U.S. Real Exchange Rate Changes ,"
NBER Working Papers
5394, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Engel, C., 1996.
"Accounting for U.S. Real Exchange Rate Changes ,"
Working Papers
96-02, University of Washington, Department of Economics.
Charles F. Manski, 2004.
"Measuring Expectations ,"
Econometrica ,
Econometric Society, vol. 72(5), pages 1329-1376, 09.
[Downloadable!] (restricted)
Mario J. Crucini & Chris I. Telmer & Marios Zachariadis, 2005.
"Understanding European Real Exchange Rates ,"
American Economic Review ,
American Economic Association, vol. 95(3), pages 724-738, June.
[Downloadable!]
Other versions: R. Guesnerie, 2002.
"Anchoring Economic Predictions in Common Knowledge ,"
Econometrica ,
Econometric Society, vol. 70(2), pages 439-480, March.
[Downloadable!] (restricted)
Other versions: Roger Guesnerie, 2001.
"Short-Run Expectational Coordination: Fixed Versus Flexible Wages ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 116(3), pages 1115-1147, August.
[Downloadable!] (restricted)
Evans, George, 1985.
"Expectational Stability and the Multiple Equilibria Problem in Linear Rational Expectations Models ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 100(4), pages 1217-33, November.
[Downloadable!] (restricted)
Dixit, Avinash & Norman, Victor, 1986.
"Gains from trade without lump-sum compensation ,"
Journal of International Economics ,
Elsevier, vol. 21(1-2), pages 111-122, August.
[Downloadable!] (restricted)
Marc J. Melitz, 2003.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity ,"
Econometrica ,
Econometric Society, vol. 71(6), pages 1695-1725, November.
[Downloadable!] (restricted)
Other versions: Beth Allen & Jayasri Dutta & Haraklis M. Polemarchakis, 1994.
"Equilibrium selections ,"
Discussion Paper / Institute for Empirical Macroeconomics
90, Federal Reserve Bank of Minneapolis.
[Downloadable!]
Hector Calvo-Pardo, 2009.
"Are the antiglobalists right? Gains-from-trade without a Walrasian auctioneer ,"
Economic Theory ,
Springer, vol. 38(3), pages 561-592, March.
[Downloadable!] (restricted)
Other versions: Guesnerie, Roger, 1992.
"An Exploration of the Eductive Justifications of the Rational-Expectations Hypothesis ,"
American Economic Review ,
American Economic Association, vol. 82(5), pages 1254-78, December.
[Downloadable!] (restricted)
Other versions: Pedro Jara-Moroni, 2007.
"Rationalizability in games with a continuum of players ,"
PSE Working Papers
2007-25, PSE (Ecole normale supérieure), revised Apr 2008.
[Downloadable!]
Roger Guesnerie & Hector Calvo Pardo, 2004.
"Eductive stability in sequential exchange economies: an introduction ,"
DELTA Working Papers
2004-24, DELTA (Ecole normale supérieure).
[Downloadable!]
repec:rus:hseeco:122439 is not listed on IDEAS
Grandmont, J. M. & McFadden, D., 1972.
"A technical note on classical gains from trade ,"
Journal of International Economics ,
Elsevier, vol. 2(2), pages 109-125, May.
[Downloadable!] (restricted)
Guesnerie, R., 2000.
"The Government and Market Expectations ,"
DELTA Working Papers
2000-15, DELTA (Ecole normale supérieure).
Other versions: Hopenhayn, Hugo A, 1992.
"Entry, Exit, and Firm Dynamics in Long Run Equilibrium ,"
Econometrica ,
Econometric Society, vol. 60(5), pages 1127-50, September.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Giovanni Facchini & Thierry Verdier, 2009.
"Symposium on organization, heterogeneity and trade ,"
Economic Theory ,
Springer, vol. 38(3), pages 433-436, March.
[Downloadable!] (restricted)
Hector Calvo-Pardo, 2009.
"Are the antiglobalists right? Gains-from-trade without a Walrasian auctioneer ,"
Economic Theory ,
Springer, vol. 38(3), pages 561-592, March.
[Downloadable!] (restricted)
Other versions:
Access and
download statistics Did you know? You too can volunteer for RePEc, for example by encouraging others to register as authors .
This page was last updated on 2009-11-24.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .