Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model

Detalhes bibliográficos
Autor(a) principal: Leão, Emanuel R.
Data de Publicação: 2009
Outros Autores: Leão, Pedro R.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/2541
Resumo: Although a major contribution to trade theory, Krugman's 1979 demonstration that 'trade can arise and lead to mutual gains even when countries are similar' fails to make explicit the economic mechanisms that lead up to this result. The current paper attempts to fill this gap by addressing several questions that are implicit in Krugman's demonstration but which he does not explicitly analyze: - What is the effect of trade upon the demand curve faced by the typical firm in each nation? -How do firms react to the change in the demand curves they face, and what is the short-term outcome of their behaviour? Why do some firms fail? What is the role of the failure of firms in the adjustment to the final free trade equilibrium?
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spelling Trade based on economies of scale under monopolistic competition: a clarification of Krugman's modelKrugmanIntra-Industry TradeEconomies of ScaleMonopolistic CompetitionAlthough a major contribution to trade theory, Krugman's 1979 demonstration that 'trade can arise and lead to mutual gains even when countries are similar' fails to make explicit the economic mechanisms that lead up to this result. The current paper attempts to fill this gap by addressing several questions that are implicit in Krugman's demonstration but which he does not explicitly analyze: - What is the effect of trade upon the demand curve faced by the typical firm in each nation? -How do firms react to the change in the demand curves they face, and what is the short-term outcome of their behaviour? Why do some firms fail? What is the role of the failure of firms in the adjustment to the final free trade equilibrium?ISEG – Departamento de EconomiaRepositório da Universidade de LisboaLeão, Emanuel R.Leão, Pedro R.2010-11-19T15:16:36Z20092009-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/2541engLeão, Emanuel R. e Pedro R. Leão. 2009. "Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model". Instituto Superior de Economia e Gestão - DE Working papers nº 10-2009/DE/UECE0874-4548info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:33:43Zoai:www.repository.utl.pt:10400.5/2541Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:50:32.367215Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
title Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
spellingShingle Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
Leão, Emanuel R.
Krugman
Intra-Industry Trade
Economies of Scale
Monopolistic Competition
title_short Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
title_full Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
title_fullStr Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
title_full_unstemmed Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
title_sort Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model
author Leão, Emanuel R.
author_facet Leão, Emanuel R.
Leão, Pedro R.
author_role author
author2 Leão, Pedro R.
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Leão, Emanuel R.
Leão, Pedro R.
dc.subject.por.fl_str_mv Krugman
Intra-Industry Trade
Economies of Scale
Monopolistic Competition
topic Krugman
Intra-Industry Trade
Economies of Scale
Monopolistic Competition
description Although a major contribution to trade theory, Krugman's 1979 demonstration that 'trade can arise and lead to mutual gains even when countries are similar' fails to make explicit the economic mechanisms that lead up to this result. The current paper attempts to fill this gap by addressing several questions that are implicit in Krugman's demonstration but which he does not explicitly analyze: - What is the effect of trade upon the demand curve faced by the typical firm in each nation? -How do firms react to the change in the demand curves they face, and what is the short-term outcome of their behaviour? Why do some firms fail? What is the role of the failure of firms in the adjustment to the final free trade equilibrium?
publishDate 2009
dc.date.none.fl_str_mv 2009
2009-01-01T00:00:00Z
2010-11-19T15:16:36Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/2541
url http://hdl.handle.net/10400.5/2541
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Leão, Emanuel R. e Pedro R. Leão. 2009. "Trade based on economies of scale under monopolistic competition: a clarification of Krugman's model". Instituto Superior de Economia e Gestão - DE Working papers nº 10-2009/DE/UECE
0874-4548
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG – Departamento de Economia
publisher.none.fl_str_mv ISEG – Departamento de Economia
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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