A Simple Model of Competition Policies, Trade, and the Skill Premium
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- Kurokawa Yoshinori
- Faculty of Humanities and Social Sciences, University of Tsukuba
Description
<p>We develop a simple model of competition policies and trade, where fixed costs are shared within a cartel. The closed economy model shows that entry deregulation can increase the skill premium by increasing firm numbers and decreasing firm size, while an antitrust policy has the opposite effects. The numerical example with two asymmetric countries shows that entry deregulation and antitrust policy in one country, respectively, can increase and decrease the skill premia in both countries; however, the domestic skill premium is changed by a greater percentage than the foreign one. Available U.S. data show that our model seems empirically relevant.</p><p>JEL Classifications: F12, F16, J31, L13, L41, L51</p>
Journal
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- The International Economy
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The International Economy 23 (0), 145-162, 2020
The Japan Society of International Economics
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Details 詳細情報について
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- CRID
- 1390567901495908736
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- NII Article ID
- 130007950315
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- ISSN
- 18844367
- 21866074
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- Text Lang
- en
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- Data Source
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- JaLC
- Crossref
- CiNii Articles
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- Abstract License Flag
- Disallowed