Derive the relative prices that would have to prevail in a competitive market to keep the individual at autarky. Compare and evaluate critically the solutions of duopoly proposed by at least 3 of the following: Cournot, Bertrand, Stackelberg, and Fellner. Keynes maintained that an economy could ...
The long-run equilibrium, κ Full size image In the autarky region, the tax rate is set high enough so that the country will not trade with the rest of the world; consequently, changes in π or τ will have no marginal effect on the resulting allocation of resources in the economy. ...
The planner must choose a network and a portfolio that does not decrease the expected market value of any bank below its autarky market value—that is, the expected market value if the bank has no financial claims and holds only a single asset. Since in autarky bank i fails following a ...
They found that high self-sufficiency in wheat stabilises domestic retail wheat flour prices, which is a similar conclusion to the one we drew in the present experiments. Based on the evidence presented from Guo and Tanaka (2019) and this study, high self-sufficiency or autarky is effective ...
The investment decline because of higher oil price volatility under financial integration is almost twice as much as the decline under financial autarky. Moreover, the interaction between shocks to the level and volatility of oil prices is quantitatively important....
The first condition for competitive equilibrium is clearly satisfied, as the price of a share of either firm is equal to its value, given the voting profile. Furthermore, each agent is voting so as to maximize the value of his shares; hence, the second condition for competitive equilibrium ...
Consequently, the union treats all workers equally, thus the equilibrium wage arising from wage bargaining will be identical for all employed workers regardless of the particular firm at which they are employed. Furthermore, according to equation (1) the output level is also symmetric, amounting ...
Rental on Land 3 Earnings of Capital and Land Determining the Payments to Capital and Land General Equation for the Change in Factor Prices These equations summarize the response of all three factor prices in the short run, when capital and land are specific to each sector but labor is mobile...
equilibrium shifts from point A to point B. The amount of labor used in manufacturing rises from 0 M L to 0 M L′ , and the amount of labor used in agriculture falls from 0 A L to 0 A L′ . The wage increases from W to W′ , but this increase is less than the...
There are a few historical examples of countries that have moved from autarky (i.e., no trade) to free trade, or vice versa, quickly enough to estimate the gains from trade. One such episode in the United States occurred between December 1807 and March 1809, when the U.S. Congress impo...