International Trade and Economic Dynamics: Essays in Memory of Koji Shimomura

521 Pages·2009·5.999 MB·English

by  Takashi Kamihigashi, Laixun Zhao (auth.), Takashi Kamihigashi, Laixun Zhao (eds.)

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1 23
International Trade and Economic Dynamics
Koji Shimomura
April 12, 1952 – February 24, 2007
Photograph by Kwan Choi
Midwest International Economics Meeting
Indiana University, Bloomington, USA, October 2003
·
Takashi K amihigashi Laixun Z hao
Editors
International Trade
and Economic Dynamics
Essays in Memory
of K oji Shimomura
Editors
Professor Takashi K amihigashi
Professor Laixun Z hao
RIEB, K obe University
2-1 Rokkodai, Nada
K obe 657-8501
Japan
[email protected]
[email protected]
ISBN 978-3-540-78675-7 e-ISBN 978-3-540-78676-4
Library of Congress Control Number: 2008929904
© 2009 Springer-Verlag Berlin Heidelberg
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Cover photo by Hidetoshi Y amaji
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Printed on acid-free paper
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Acknowledgements
On24February2007,KojiShimomuradiedofcomplicationsfromlivercancerat
the age of54. Hisuntimelydeath wasmournedby hisstudents,colleagues,coau-
thors, and friends all over the world. As of December 2007, he published nearly
100academicpapers,withagreatmajorityofthemhavingappearedduringthelast
decade.Duringthisperiod,hebecameincreasinglyproductivedespitehisdeterio-
ratinghealthcondition.Manynewchaptersofhiswithcoauthorsarestillexpected
toappear.Thisvolumeincludesthreesuchchapters.
We express heartfelt thanks to Kazuo Nishimura, Makoto Yano, and Seiichi
Katayamafortheirencouragementandadviceduringtheinitialphaseofthisproject.
Wethankthefinancialsupportfromthe21CenturyCOEProgramattheGraduate
SchoolofEconomicsandtheResearchInstituteofEconomicsandBusinessAdmin-
istration(RIEB),KobeUniversity.WethankShojiNishijima,SubleaderoftheCOE
ProgramattheRIEBsucceedingKoji,JunichiGoto,DirectoroftheRIEB,aswellas
ourstaffattheRIEB,includingYachioYoneda,KiyokoSekiguchi,ShihoMagata,
TamakiMurase,andHarumiWatanabe,fortheirinvaluablesupportandassistance
throughoutthisproject.
Many of the contributorsalso participated in the Conference on Globalization,
InternationalTrade,andEconomicDynamicsinMemoryofKojiShimomura,held
in November 2007, and organized by the editors of this volume. Earlier versions
of some of the chapters included in this volume were presented at the confer-
ence.Weexpressoursinceregratitudetoallthecontributorsfortheirwholehearted
cooperation.
Lastlybutnotleast,wearegratefultoWernerA.MuellerandKatharinaWetzel-
Vandai of Springer for their editorial support, without which this project would
neverhavematerialized.
February2008 TakashiKamihigashi
LaixunZhao
v
Contents
Introduction.................................................... 1
TakashiKamihigashiandLaixunZhao
KojiShimomura:EmergingTradeTheorist ......................... 5
MurrayC.Kemp
PartI StaticTheoryofInternationalTradeUnderPerfectCompetition
Rybczynski’sDiagramandtheStolper/SamuelsonTheorem ........... 9
RonaldW.Jones
OnTradeGainsandInternationalDisparitiesinFactorProportions .... 13
MurrayC.KempandBinhTran-Nam
A Modified Heckscher–OhlinTheorem Under Quasilinear Utility
Functions ...................................................... 19
JunkoDoi,KenjiFujiwara,ToruKikuchi,andKojiShimomura
ExternalEconomiesofScaleandComparativeAdvantage ............. 37
WilfredJ.EthierandRoyJ.Ruffin
IsFreeTradeOptimalforaSmallOpenEconomywithTourism?....... 49
Chi-ChurChao,BharatR.Hazari,Jean-PierreLaffargue,andEdenS.H.Yu
FactorMobilityandWageInequality............................... 63
MasaoOdaandRobertStapp
A Pareto Improvement in Customs Unions Without Intra-Union
Transfer ....................................................... 73
LingQiandKojiShimomura
EnvironmentandtheHarrisandTodaroParadoxes .................. 87
MakotoTawadaandAzusaNakamura
vii
viii Contents
TradePolicyandIllegalImmigration............................... 101
AlanWoodlandandChisataYoshida
PartII StaticTheoryofInternationalTradeUnderImperfectCompetition
TradeinCounterfeitOrganicProducts ............................. 123
E.KwanChoi
ForeignEconomic Aid and Trade LiberalizationUnder Imperfect
Competition.................................................... 139
HiroshiKurataandMasayukiOkawa
QuotaasaCompetitiveDevice .................................... 151
SugataMarjit,TarunKabiraj,andArijitMukherjee
SuccessiveExpansionandStabilityofNetworkIntegration
inInternationalTrade ........................................... 161
NoritsuguNakanishi
Endogenous Leadership with and without Policy Intervention:
InternationalTradeWhenProducerandSellerDiffer................. 187
ZhifangPengandSajalLahiri
TradingUnderStrategicSelf-Constraint:ConceptualIssues
andFactualEvidence ............................................ 203
HenryWan,Jr.
PartIII DynamicTheoryofInternationalTrade
DynamicLaborStandardsUnderInternationalOligopoly ............. 217
YunfangHuandLaixunZhao
QuotasUnderDynamicBertrandCompetition....................... 239
KazMiyagiwaandYukaOhno
ImportedInputs:DynamicEffectsonEconomicGrowth .............. 257
StefanF.SchubertandStephenJ.Turnovsky
MultiplicityandStabilityofEquilibriuminTradeModels
withDurableGoods ............................................. 281
EricBondandRobertDriskill
ImportTariffsandGrowthinaModelwithHabits ................... 299
Been-LonChen,Shun-FaLee,andKojiShimomura
PreferenceStructureandVolatilityinaFinanciallyIntegratedWorld ... 323
KazuoMino
Contents ix
PartIV MacroeconomicDynamics
EfficientFiscalPolicyRestrictionsinaMonetaryUnion ............... 345
CostasAzariadisandRaphaelW.K.Lam
TheEffectsofFactorTaxationinDynamicEconomieswithExternalities
andEndogenousLaborSupply .................................... 361
DaisukeAmano,Jun-ichiItaya,andKazuoMino
StatusSeekingandBubbles ....................................... 383
TakashiKamihigashi
OntheRoleoftheRateofTimePreferenceinMacroeconomics:
ASurvey....................................................... 393
KoichiHamadaandYosukeTakeda
CharacterizationofEquilibriumPathsinaTwo-SectorEconomy
withCESProductionFunctionsandSector-SpecificExternality ........ 421
MikiMatsuo,KazuoNishimura,TomoyaSakagami,andAlainVenditti
Tobin’s“KeynesianModelsofRecessionsandDepression”Revisited .... 433
ParthaSen
InflationDynamicsandtheCross-SectionalDistributionofPrices
intheE.U.Periphery ............................................ 449
ConstantinaKottaridi,DiegoMe´ndez-Carbajo,andDimitriosD.Thomakos
MacroDynamicsandLabor-SavingInnovation:USvs.Japan .......... 477
RyuzoSatoandTamakiMorita
PartV Compensation,Entrepreneurship,andPriceLeadership
Entrepreneurship,OrganizationCapital,andtheEvolutionoftheFirm.. 499
AtsushiOshima,B.Ravikumar,andRaymondRiezman
OnYano’sPriceLeadershipGame................................. 513
MakotoYanoandTakashiKomatsubara
VilfredoPareto’sPrincipleofCompensation......................... 525
MurrayC.Kemp
Contributors
DaisukeAmano
GraduateSchoolofEconomicsandBusinessAdministration,HokkaidoUniversity,
Sapporo,060-0809,Japan,e-mail:[email protected]
CostasAzariadis
DepartmentofEconomics,WashingtonUniversityinSt.Louis,andFederalReserve
BankofSt.Louis,St.Louis,MO63130,USA,e-mail:[email protected]
EricBond
DepartmentofEconomics,VanderbiltUniversity,VUStationB#351819,2301
Vanderbilt Place, Nashville, Tennessee 37235, USA,
e-mail:[email protected]
Chi-ChurChao
DepartmentofEconomics,ChineseUniversityofHongKong,Shatin,HongKong,
China
Been-LonChen
InstituteofEconomics,AcademiaSinica,128AcademiaRd.,Section2,Taipei
11529,Taiwan,e-mail:[email protected],
WashingtonUniversity,205EliotHall,St.Louis,MO63130,USA
E.KwanChoi
Department of Economics, Iowa State University, Ames, IA 50011, USA,
e-mail:[email protected]
JunkoDoi
FacultyofEconomics,KansaiUniversity,Suita,Osaka,Japan
RobertDriskill
Department of Economics, Vanderbilt University, VU Station B
#351819, 2301 Vanderbilt Place, Nashville, Tennessee 37235, USA,
e-mail:[email protected]
xi