This PDF is a selection from a published volume from... National Bureau of Economic Research
... IT stock is defined so that it includes spending on both IT capital and labor.5 Information technology capital is a stock variable, while IT labor expense is a flow variable. To combine the two into a single stock variable, it is assumed IT labor expense stayed at the current level for the last seve ...
... IT stock is defined so that it includes spending on both IT capital and labor.5 Information technology capital is a stock variable, while IT labor expense is a flow variable. To combine the two into a single stock variable, it is assumed IT labor expense stayed at the current level for the last seve ...
Chapter 12 Monopoly
... Second degree price discrimination Second-degree price discrimination: • The monopolist post a schedule along which price declines with the quantity one buys, i.e. quantity discount. • “Price discrimination within markets” • Examples: quantity discounts, coupons, regular price fluctuations ...
... Second degree price discrimination Second-degree price discrimination: • The monopolist post a schedule along which price declines with the quantity one buys, i.e. quantity discount. • “Price discrimination within markets” • Examples: quantity discounts, coupons, regular price fluctuations ...
The relevance of the Stolper-Samuelson theorem
... determined entirely by a combination of world traded prices and the parameters of technology. Within certain bounds, changes in the supply of skilled and unskilled labour or changes in taste of consumers will have no effect on wages. We outline how this theory has been used by some studies to estima ...
... determined entirely by a combination of world traded prices and the parameters of technology. Within certain bounds, changes in the supply of skilled and unskilled labour or changes in taste of consumers will have no effect on wages. We outline how this theory has been used by some studies to estima ...
Exports and Investment
... FDI theories assume certain threshold costs • Generally not dealt with in FDI empirical models • Markusen (2002): fixed cost that MNEs need to consider when undertaking FDI • Heckman's (1979) two-step model to control for whether sample selection is driving results ...
... FDI theories assume certain threshold costs • Generally not dealt with in FDI empirical models • Markusen (2002): fixed cost that MNEs need to consider when undertaking FDI • Heckman's (1979) two-step model to control for whether sample selection is driving results ...
Theory - Dave Donaldson
... Firms will only be active in the smaller market if they have to pay lower wages or face softer competition, i.e. smaller number of domestic firms But labor supply is perfectly inelastic ⇒ number of domestic firms is fixed So smaller market has to be associated with lower wages Stanford Econ 266 (Don ...
... Firms will only be active in the smaller market if they have to pay lower wages or face softer competition, i.e. smaller number of domestic firms But labor supply is perfectly inelastic ⇒ number of domestic firms is fixed So smaller market has to be associated with lower wages Stanford Econ 266 (Don ...
Measuring business profits: economists versus accountants
... to the revenues of particular periods, an ex-ante element is included, as in, economics, even in the accounting concept of profit. 3.2 Depreciation in real terms In contrast to accounting view of depreciation based on the money values of assets, the economists have always insisted that the capital o ...
... to the revenues of particular periods, an ex-ante element is included, as in, economics, even in the accounting concept of profit. 3.2 Depreciation in real terms In contrast to accounting view of depreciation based on the money values of assets, the economists have always insisted that the capital o ...
Ch13.pps
... wages and prices are free to adjust to balance supply and demand. In this model, the short-run and long-run aggregate supply curves differ because of temporary misperceptions about prices. The imperfect-information model assumes that each supplier in the economy produces a single good and consumes m ...
... wages and prices are free to adjust to balance supply and demand. In this model, the short-run and long-run aggregate supply curves differ because of temporary misperceptions about prices. The imperfect-information model assumes that each supplier in the economy produces a single good and consumes m ...
Brander–Spencer model
The Brander–Spencer model is an economic model in international trade originally developed by James Brander and Barbara Spencer in the early 1980s. The model illustrates a situation where, under certain assumptions, a government can subsidize domestic firms to help them in their competition against foreign producers and in doing so enhances national welfare. This conclusion stands in contrast to results from most international trade models, in which government non-interference is socially optimal.The basic model is a variation on the Stackelberg–Cournot ""leader and follower"" duopoly game. Alternatively, the model can be portrayed in game theoretic terms as initially a game with multiple Nash equilibria, with government having the capability of affecting the payoffs to switch to a game with just one equilibrium. Although it is possible for the national government to increase a country's welfare in the model through export subsidies, the policy is of beggar thy neighbor type. This also means that if all governments simultaneously attempt to follow the policy prescription of the model, all countries would wind up worse off.The model was part of the ""New Trade Theory"" that was developed in the late 1970s and early 1980s, which incorporated then recent developments from literature on industrial organization into theories of international trade. In particular, like in many other New Trade Theory models, economies of scale (in this case, in the form of fixed entry costs) play an important role in the Brander–Spencer model.