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Heterogeneous Consumers and Trade Patterns in a Monopolistically Competitive Setting
Высшая школа экономики
,
2016.
No. WP BRP 131/EC/2016.
Osharin A., Verbus V. A.
The paper considers a two-country trade model of monopolistic competition featuring the heterogeneity of consumer preferences both within and across countries. The incorporation of heterogeneity into a traditional monopolistic competition setting is achieved by assuming different elasticities of substitution in the CES utility function for different consumers. The proposed setup expands on the traditional model of trade by demonstrating a richer set of country specific effects. The key question analysed in the paper is how consumer heterogeneity and trade liberalization affect markups and wages in different countries. Unlike the canonical CES-model of trade, where markups in different countries are constant and identical to each other, our model, by taking consumer heterogeneity into account, provides different markups across countries, incorporating both heterogeneity and trade specifics. The model also predicts that the larger of two countries engaged in costly trade may have a wage rate higher than, lower than or equal to that of the smaller one, depending on the general equilibrium conditions. This finding is in contrast to that of the canonical setting, where the larger country under costly trade always has a higher wage rate.
Osharin A., Valery Verbus, Irina Bakunina et al., Journal of Economic Structures 2020 Vol. 9 P. 1-12
The paper develops a two-country monopolistic competition model of trade featuring country-specifc consumer tastes. The accounting for heterogeneity in tastes is achieved by assuming diferent elasticities of substitution in the CES utility function for diferent country consumers. The proposed framework extends the canonical Krugman’s approach by revealing new efects regarding markups response to consumer heterogeneity ...
Added: October 10, 2020
Verbus V. A., Osharin A., Экономическая политика 2019 Т. 14 № 3 С. 152-175
The paper builds a two-sector monopolistic competition model featuring multi-product firms and heterogeneous consumers endowed with a Cobb–Douglas utility nesting a generalized CES function. In contrast to the standard CES, the generalized CES function includes both the love of variety and the love for product quality, which makes it possible to distinguish consumers differing in their ...
Added: October 24, 2019
Osharin A., Verbus V. A., Journal of Economics 2018 Vol. 125 No. 3 P. 211-237
The paper considers a two-sector two-country trade model of monopolistic competition featuring the heterogeneity of consumer preferences and incomes within and across countries. The incorporation of heterogeneity into a monopolistic competition setting is achieved by assuming a nested Cobb–Douglas and CES utility function exhibiting both country and sector-specific consumer tastes and expenditure shares on manufacturing ...
Added: March 29, 2018
Osharin A., Verbus V. A., / EERC. Series "Labor markets and social policy". 2015. No. 15/03E.
The present paper extends the traditional Dixit and Stiglitz set-up by introducing consumers’ workers’ heterogeneity into a general equilibrium model of monopolistic competition. The model obtains a closed-form solution for a symmetric equilibrium and shows how the market outcome depends on the joint distribution of consumers’/workers’ taste and labor productivities. In contrast to the traditional ...
Added: March 8, 2016
Kichko S., Kokovin S. G., Zhelobodko E. V., / Высшая школа экономики. Series WP BRP "Economics/EC". 2014. No. WP BRP 54/EC/2014.
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of substitution. Firms' profits and sizes may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manufactured good, although both firm sizes and ...
Added: April 3, 2014
Alexander Osharin, Advances in Economics and Business 2013 Vol. 1 No. 2 P. 145-149
The paper investigates distributional effects and market structure in a one-sector model of monopolistic competition with heterogeneous consumers. By using the CES utility function depending on consumer’s personal income the paper shows how the equilibrium prices, firm size and number of firms depend upon income distribution and intensity of competition. The proposed model extends the ...
Added: November 13, 2013
Kichko S., Kokovin S. G., Zhelobodko E. V., / Austrian Institute of Economic Research, Vienna Institute for International Economic Studies, Computing Centre for Economics and Social Sciences. Series FIW "FIW Working Paper". 2013. No. 124.
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of substitution. Firm profit and firm size may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manufactured good, while both firms' size ...
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Zhelobodko E. V., Kichko S., Ushchev P., Пространственная экономика 2013 № 3 С. 10-29
We study the impact of trade liberalization on the market of a differentiated good and consumers’ welfare. The economy involves two factors of production: labor and capital. We find that consumers always gain from trade liberalization. We also establish that the behavior of equilibrium price is independent of factor endowments’ structure in the countries involved ...
Added: November 18, 2013
Osharin A., Thisse J., Ushchev P. et al., / Université catholique de Louvain. Series CORE DP-2013 "CORE Discussion Paper". 2013. No. 2013/71.
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Added: February 22, 2014
Osharin A., Verbus V., / Economics Education and Research Consortium. Series "EERC Working Paper Series". 2015. No. 15/E03.
The present paper extends the traditional Dixit and Stiglitz set-up by introducing consumers’/workers’ heterogeneity into a general equilibrium model of monopolistic competition. The model obtains a closed-form solution for a symmetric equilibrium and shows how the market outcome depends on the joint distribution of consumers’/workers’ taste and labor productivities. In contrast to the traditional framework, ...
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Ivanova V., Ushchev P., The Scandinavian Journal of Economics 2019 Vol. 121 No. 3 P. 1244-1269
Standard measures of competitive toughness fail to capture the fact that, as consumers optimize intertemporally, firms operating today compete with (yet non-existent) businesses which will be started tomorrow. We develop a two-tier CES model of dynamic monopolistic competition in which the impact of product differentiation on the market outcome depends crucially on the elasticity of ...
Added: January 9, 2018
Kichko S., Sergey Kokovin, Evgeny Zhelobodko, Journal of International Economics 2014 No. 94 P. 129-142
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of sub- stitution. Firms' prots and sizes may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manu- factured good, although both rm ...
Added: June 19, 2014
Демина М. О., Проблемы Дальнего Востока 2016 № 3 С. 112-120
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Пеклеванная М. В., Зленко А. Н., Экономика и предпринимательство 2016 № 10-3 (75-3) С. 170-174
The article presents the results of the assessment of the impact of the industrial production zone "Lipetsk" on the employment of the population of the Lipetsk region. Data on the number of population, employment and unemployment in the region before and after the establishment of an industrial and industrial zone on its territory are given. ...
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Oshchepkov A. Y., / Высшая школа экономики. Серия WP3 "Проблемы рынка труда". 2019. № WP3/2019/08.
This study analyses wage diff erentials between Russian regions. We focus on two long-term factors shaping them: diff erent regional economic structures and living conditions. To examine the role of these factors we use micro-data from the Rosstat’s enterprise sample surveys conducted in 2005–2015, combined with data from the aggregated regional-level statistics. By estimating mincer-type ...
Added: December 27, 2019
Golovanova S., Балтийский регион 2011 Т. 2 № 8 С. 39-47
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Biryukova O. V., Матюхина А.И., Латинская Америка 2016 № 9 С. 41-54
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Glazatova M., Daniltsev A. V., Medvedkov M. Y., Международная экономика 2014 № 3 С. 17-29
Trade restrictions on the way to “green” economy: a survival tool or a new protectionism The article considered the new risks of controls in national and international trade that affect the conditions of access of goods to national markets and the development of protectionism. The authors argue that the international community developed mechanisms to protect ...
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Бакуменко Л. П., Mkhitarian V., Экономика, статистика и информатика. Вестник УМО 2010 № 2 С. 86-91
Questions of differentiation of the population on a level of incomes in Republic Mary El are considered. Parameters of a variation and structure of the basic monetary incomes are analyses. Classification of administrative areas on the parameters describing incomes of the population is lead. The analysis of territorial distinctions of the population on levels of ...
Added: October 30, 2012
Kalimullina M., Орлов М. П., Heliyon 2020 Vol. 6 No. 11 P. E05355
This paper evaluates current food commodity trading from the Shariah point of view, which is particularly relevant for the MENA region. It focuses on futures contracts as the main instrument for grain trading and analyzes the traders’ activities. Through a qualitative and multifaceted approach, the paper accumulates and evaluates the suggestions for 15 Shariah-based alternatives ...
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Klochko O., Manuylov I., Мировая экономика и международные отношения 2019 № 4 С. 14-21
Participation of a country in global value chains is highly dependent on types of interaction with its major trading partners. The purpose of current research is to uncover the US influence on the Canadian pharmaceutical industry insertion into global value chains. The first part of the analysis is devoted to key trends of the US ...
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Лайкам К. Э., Зарова Е. В., Зайнуллина З. Ж. et al., Вопросы статистики 2017 № 6 С. 3-8
This article focuses on the explanations of changes in official methodology and new information sources used to calculate the average monthly accrued wages of hired workers (employees) in organizations, individual entrepreneurs and individuals (average monthly income from employment).
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