International Trade, Welfare, and the Theory of General Equilibrium

Provides theoretical and applied contributions connected by the methodological approach to the use of general equilibrium model.

Sugata Marjit (Edited by), Saibal Kar (Edited by)

9781108473873, Cambridge University Press

Hardback, published 18 October 2018

250 pages
23.6 x 16 x 1.9 cm, 0.44 kg

This essential volume reflects the continuing and enduring utility of general equilibrium as a framework of analyses. It attempts to reiterate that understanding broad and holistic consequence of economic events and policies go beyond partial equilibrium perspective. Cutting across areas of research, general equilibrium perspectives in terms of small-scale GE models following the theory and perspectives of Ronald Jones can help readers develop informed judgement regarding critical policies. These include but are not limited to several areas of specific interest - the interaction of financial factors with international trade and implications for the 'real sectors' of the economy, the impact of labour market reforms on the unorganised sectors in developing and transition countries, the non-uniform effects of inflation and deflation on internal and external factor flows, and the sought-after relation between foreign investment and skill accumulation.

Introduction
Part I. Lessons from Simple General Equilibrium Models: 1. Thoughts and remarks after 50 years of simple general equilibrium models Ronald W. Jones
Part II. Adjustment Towards Free Trade: 2. Adjustment costs and trade liberalization Eric W. Bond
3. Farsightedly stable FTA structures – the roles of pre-existing tariff rates Noritsugu Nakanishi
Part III. Skill Formation and Inequality: 4. Skilled-unskilled wage inequality and dynamic accumulation: a theoretical analysis skill Priya Brata Dutta
5. FDI in education vs FDI in commodity production: a theoretical model Rashmi Ahuja
Part IV. Implications of Factor Flows: 6. Skilled migration and foreign aid in a general equilibrium model of monopolistic competition Dambar Uprety and Sajal Lahiri
7. Trade, factor flows and product variety in a small open economy Anwesha Aditya
8. Product differentiation, quality of innovation and capital mobility: a general equilibrium analysis Sudeshna Mitra, Tonmoy Chatterjee and Kausik Gupta
Part V. Production Organization in Open Economies: 9. Cross-border mergers and international trade: a vertical GOLE model Hamid Beladi, Avik Chakrabarti and Sugata Marjit
10. International trade and production organization: a review of contemporary literature Meghna Dutta
Part VI. Issues in Taxation: 11. Negative production externalities, labour market imperfection and production tax policy in a developing economy Sarbajit Chaudhuri
12. Tax-financed public transfers: a mechanism for double taxation Baisakhi Marjit, Sugata Marjit and Saibal Kar.

Subject Areas: Economic systems & structures [KCS], Welfare economics [KCR], International economics [KCL], Economic growth [KCG], Economics of industrial organisation [KCD], Macroeconomics [KCB]