IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/907.html
   My bibliography  Save this paper

Comments on the Harrison-Rutherford-Tarr CGE Model with Imperfect Competition and Increasing Returns to Scale

Author

Listed:
  • De Santis, Roberto A.

Abstract

Harrison, Rutherford and Tarr (1997) use a multiregional Computable General Equilibrium (CGE) model with a CES multistage demand system, imperfect competition, increasing returns to scale (IRS), and two endogenous price elasticities of demand perceived by a firm in each national market, in order to quantify the reforms of the Uruguay Round, when firms compete in a quantity setting oligopoly with constant conjectures. This paper argues that the derivation of the price markups is based on two incorrect assumptions, which might affect their empirical results, especially on output and welfare.

Suggested Citation

  • De Santis, Roberto A., 1999. "Comments on the Harrison-Rutherford-Tarr CGE Model with Imperfect Competition and Increasing Returns to Scale," Kiel Working Papers 907, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:907
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/17773/1/265643775.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Smith, Alasdair & Venables, Anthony J., 1988. "Completing the internal market in the European Community : Some industry simulations," European Economic Review, Elsevier, vol. 32(7), pages 1501-1525, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. De Santis, Roberto A., 1999. "Intra-industry trade, endogenous technological change, wage inequality and welfare," Kiel Working Papers 921, Kiel Institute for the World Economy (IfW Kiel).
    2. Willenbockel, Dirk, 2004. "Specification choice and robustness in CGE trade policy analysis with imperfect competition," Economic Modelling, Elsevier, vol. 21(6), pages 1065-1099, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Bonis, Valeria, 1997. "Regional integration and factor income taxation," Policy Research Working Paper Series 1849, The World Bank.
    2. Jaime de Melo & David Tarr, 2015. "VERs under imperfect competition and foreign direct investment: A case study of the US–Japan auto VER," World Scientific Book Chapters, in: Modeling Developing Countries' Policies in General Equilibrium, chapter 22, pages 461-483, World Scientific Publishing Co. Pte. Ltd..
    3. Razin, Assaf & Sadka, Efraim & Coury, Tarek, 2003. "Trade openness, investment instability and terms-of-trade volatility," Journal of International Economics, Elsevier, vol. 61(2), pages 285-306, December.
    4. Arjan Lejour & Vladimir Solanic & Paul Tang, 2009. "EU Accession and Income Growth: An Empirical Approach," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 127-144, May.
    5. Hughes Hallett,Andrew J., 1992. "The impact of EC-92 on developing countries'trade : a dissenting view," Policy Research Working Paper Series 885, The World Bank.
    6. Bouzahzah, Mohamed & Esmaeili, Hamid & Ihadiyan, Abid, 2007. "Ouverture commerciale et migration," L'Actualité Economique, Société Canadienne de Science Economique, vol. 83(1), pages 71-90, mars.
    7. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, June.
    8. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    9. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    10. Taran Fæhn, 2002. "The Qualitative and Quantitative Significance of Non-Tariff Barriers: An ERP study of Norway," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 35-57.
    11. Nicolas Schmitt, 1990. "New International Trade Theories and Europe 1992: Some Results Relevant for EFTA Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 29(1), pages 53-73, September.
    12. Baldwin, Richard E. & Seghezza, Elena, 1996. "The New Growth Theory: Its Logic and Trade Policy Implications," 1996: Implications of the New Growth Theory to Agricultural Trade Research and Trade Policy Conference, December 1996, Washington DC 50862, International Agricultural Trade Research Consortium.
    13. Catia Montagna, 2001. "Efficiency Gaps, Love of Variety and International Trade," Economica, London School of Economics and Political Science, vol. 68(269), pages 27-44, February.
    14. Alasdair Smith, 1994. "Strategic Trade Policy in the European Car Market," NBER Chapters, in: Empirical Studies of Strategic Trade Policy, pages 67-84, National Bureau of Economic Research, Inc.
    15. repec:era:chaptr:2013-rpr-29-05 is not listed on IDEAS
    16. Jaime de Melo & David Roland-Holst, 2015. "Industrial Organization and Trade Liberalization: Evidence from Korea," World Scientific Book Chapters, in: Modeling Developing Countries' Policies in General Equilibrium, chapter 18, pages 385-404, World Scientific Publishing Co. Pte. Ltd..
    17. Berger, Helge & Nitsch, Volker, 2008. "Gotcha! A Profile of Smuggling in International Trade," Conference papers 331735, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Bernardin Akitoby & Jean Mercenier, 1993. "On intertemporal general-equilibrium reallocation effects of Europe's move to a single market," Discussion Paper / Institute for Empirical Macroeconomics 87, Federal Reserve Bank of Minneapolis.
    19. Ditya Agung Nurdianto, 2016. "Economic Impacts of a Carbon Tax in an Integrated ASEAN," EEPSEA Special and Technical Paper tp201604t5, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.
    20. Lofgren, Hans & Diaz-Bonilla, Carolina, 2006. "MAMS:* A framework for analyzing MDG and poverty reduction strategies," Conference papers 331553, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    21. Kind, Hans Jarle & Knarvik, Karen Helene Midelfart & Schjelderup, Guttorm, 2000. "Competing for capital in a 'lumpy' world," Journal of Public Economics, Elsevier, vol. 78(3), pages 253-274, November.

    More about this item

    Keywords

    Price markup; Computable General Equilibrium analysis;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.