Optimal domestic regulation under asymmetric information and international trade: a simple general equilibrium approach

David Martimort 1, 2, 3 Thierry Verdier 1, 2, 3
1 PSE - Paris-Jourdan Sciences Economiques
2 PSE - Paris School of Economics
3 CEPR - Center for Economic Policy Research
Abstract : We investigate the design of domestic incentive regulations in a small economy opened to trade and its implications for international specialization and for trade openness to remain welfare-improving. More specifically, we append to an otherwise standard 2 × 2 Heckscher-Ohlin model of a small open economy a continuum of intermediate sectors producing nontradable goods used in tradable sectors. Those goods are produced by privately informed regulated firms. Asymmetric information induces distortions with general equilibrium impacts. The small economy becomes relatively richer in the informationally sensitive factor so that asymmetric information might reverse trade patterns. Free trade is Pareto-dominated by autarky when it exacerbates agency distortions.
Type de document :
Article dans une revue
RAND Journal of Economics, Wiley, 2012, 43 (4), pp.650-676. 〈10.1111/1756-2171.12003〉
Liste complète des métadonnées
https://hal-pjse.archives-ouvertes.fr/hal-00813059
Contributeur : Caroline Bauer <>
Soumis le : dimanche 14 avril 2013 - 23:48:12
Dernière modification le : mardi 24 avril 2018 - 17:20:14

Lien texte intégral

istex

Identifiants

Collections

PARISTECH | PJSE_PP | PJSE | ENPC | EHESS | LABEX-OSE | ENS-PARIS | INRA | PSL

Citation

David Martimort, Thierry Verdier. Optimal domestic regulation under asymmetric information and international trade: a simple general equilibrium approach. RAND Journal of Economics, Wiley, 2012, 43 (4), pp.650-676. 〈10.1111/1756-2171.12003〉. 〈hal-00813059〉

Exporter

BibTeX TEI DC DCterms EndNote

Partager

Métriques

Consultations de la notice

381

Contact

support.ccsd.cnrs.fr
hal.support@ccsd.cnrs.fr
Logo CCSD