... themselves, especially since they imply that the MTRI must exceed the TRI when trade policies are compared with free trade. In addition, the theoretical results help to explain the clear patterns which emerge from the empirical comparisons of these measures. For the practitioner, this paper offers a ...
Endogenous Trade Bloc Formation in an Asymmetric World
... Kose and Riezman (2002) also introduce asymmetric countries into their analysis of the “innocent bystander problem”. Their approach is closest in spirit to the simulations undertaken here. However, their analysis differs from ours in a number of important respects. First they assume identical Cobb-Do ...
... Kose and Riezman (2002) also introduce asymmetric countries into their analysis of the “innocent bystander problem”. Their approach is closest in spirit to the simulations undertaken here. However, their analysis differs from ours in a number of important respects. First they assume identical Cobb-Do ...
Chapter 1
... described by Q = LK. Let w = 1 and r = 1 be the prices of labor and capital, respectively. a) Find the equation for the firm’s long-run total cost curve as a function of quantity Q. b) Solve the firm’s short-run cost-minimization problem when capital is fixed at a quantity of 5 units (i.e., K = 5). ...
... described by Q = LK. Let w = 1 and r = 1 be the prices of labor and capital, respectively. a) Find the equation for the firm’s long-run total cost curve as a function of quantity Q. b) Solve the firm’s short-run cost-minimization problem when capital is fixed at a quantity of 5 units (i.e., K = 5). ...
