The Design of Transnational Public Good Mechanisms for Developing Countries (original) (raw)

Optimal Domestic Regulation and the Pattern of Trade

This Paper analyses the impact of asymmetric information within countries on the pattern of international trade. We append to the standard 2×2 Heckscher-Ohlin model of a small economy a continuum of sectors producing intermediate non-tradable goods. Those goods are produced by monopolies having private information on their technologies. With asymmetric information and under optimal regulation, production in these sectors is inefficiently low. The small open country is relatively richer in the factor that is more intensively used by the privately informed sectors. Asymmetric information can reverse the country’s pattern of comparative advantages. Due to the existence of information rents in these sectors, the economy does not only receive the standard factor endowments (capital and labour) but also an ‘informational endowment’ which boosts demand for tradable goods. Free trade with optimal regulation is Pareto dominated by autarky with optimal regulation when, under asymmetric inform...

International Trade with Domestic Regulation under Asymmetric Information: A Simple General Equilibrium Approach

The RAND Journal of Economics

[eng] We present a two-sided search model where agents differ by their human capital endowment and where workers of different skill are imperfect substitutes. Then the labor market endogenously divides into disjoint segments and wage inequality will depend on the degree of labor market segmentation. The most important results are : 1) overall wage inequality as well as within-group and between-group inequalities increase with relative human capital inequality ; 2) within-group wage inequality decreases while between-group and overall wage inequalities increase with the efficiency of the search process ; 3) within-group, between-group and overall wage inequalities increase with technological changes. [fre] Immigration et justice sociale. . Cet article est d�di� � la m�moire d'Yves Younes qui nous a quitt�s en mai 1996, et dont les derni�res r�flexions sur l'importance du ph�nom�ne migratoire dans les �tats-Unis des ann�es 1980-1790 m'ont beaucoup influenc�.. L'ouvertu...