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This paper examines the strategic trade policy incentives for investment policies towards quality improvements in a vertically differentiated exporting industry. Firms first compete in qualities and then export to a third country market based on Bertrand or Cournot competition. Optimal policies are asymmetric across the two producing countries. Under Bertrand competition, the low-quality country subsidizes investment to raise export quality, while the high-quality country imposes a tax so as to reduce the quality of its already high quality exports. Under Cournot competition, the results are reversed with a tax in the low-quality country and a subsidy in the high-quality country
This paper introduces the relative-performance contract into a vertically differentiated product market and examines how the optimal trade policy and quality choice respond to the incentive mechanism. We find that the high quality firm makes better use of the delegation than the low quality firm in a cross-border decentralized model. The main difference between the present paper and the strategic trade theory literature is that in this paper the optimal policy is free trade, which does not depend on whether firms compete by prices or quantities, and on whether the goods are substitutes or full complements.
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The aim objective of CME 2014 is to provide a platform for researchers, engineers, academicians as well as industrial professionals from all over the world to present their research results and development activities in Information Management, Innovation Management, Project Management and Engineering. This conference provides opportunities for the delegates to exchange new ideas and application experiences face to face, to establish business or research relations and to find global partners for future collaboration. Submitted conference papers will be reviewed by technical committees of the Conference.
Eco-labelling programmes have been in existence for many years but their recent growth now extends to many products and services. The academic literature has grown in response and there have been several theoretical and empirical advances. This volume presents the best of previously published research on the design and effects of eco-labelling programmes. Whilst concentrating on the economic literature, the articles also approach the topic from a psychological, sociological and political point of view. Part One focuses on a range of theoretical developments, Part Two on empirical measurements of the effectiveness of eco-labelling, Part Three on the factors that influence the success and design of eco-labelling programmes and Part Four on the effects of eco-labelling on international trade and development.
Discussions of changes in the Social Security program must necessarily consider the impact of such changes on the well-being of the poor elderly. Under the current system, the financial needs of this population are met by the Supplement Security Income program (SSI). SSI has done much to improve situation of the poorest elderly but has the potential to do more. This paper examines that potential. One of the most surprising aspect of the program is that many of those eligible for benefits are not enrolled. Here I examine the correlates of participation for a sample of eligible individuals and use the results to simulate the effect of changes in eligibility criteria on participation and on costs. The largest expansion considered in the paper, providing an income guarantee for all elderly individuals that is equal to the poverty line, increases payments directed towards the elderly by 90 percent, to just over 8 billion in 1993 dollars. Although large, this $8 billion is less than half of the expenditures for the SSI disabled population in that year. Modifications to SSI that increase income disregards, eliminate the asset test, or base income eligibility solely on Social Security income, would be less costly, but would also provide less relief to the poor. Importantly, all programs, including the current system, could have substantially greater effects on poverty if participation rates were increased.
This title offers an integrated account of strategic trade analysis, combined with empirical evidence and new results. It addresses the need to synthesize and integrate the new advances in a field that has become a key element of policy discussions.