Foreign-domestic substitution elasticities (the so-called ‘Armington elasticities’) determine the degree of competitiveness in demand between similar products produced different countries and are key parameters a variety numerical models international trade. Armington part explanation large increases market shares foreign relative to locally ones Australia, for example. The existing literature ...

Models with monopolistic competition and constant elasticity of substitution (CES) preferences have become a mainstay of theoretical and empirical work in international trade. However, the standard model yields contrafactual predictions on the number of varieties, prices and output per variety that are traded. In particular the model predicts a rate of variety growth that is faster than that ob...

The Dissertation at hand investigates the effects of different policy options on the world sugar market. A Spatial Price Equilibrium Model as suggested by Takayama and Judge is established. This model type has one considerable advantage over previously applied types which is its ability to combine the assumption of homogeneous goods regardless of origin (as opposed to Armington-based models) wi...