The GEM-E3 model starts from the same basic structure as the standard World Bank models2. Following the tradition of these models, GEM-E3 is built on the basis of a Social Accounting Matrix (Decaluwe, Martens and Monette 1987; Decaluwe and Martens 1988) and explicitly formulates demand and supply equilibrium. Technical coefficients in production and demand are flexible in the sense that produce...

This paper investigates the effects of input-trade liberalization on firms’ decision to upgrade foreign technology embodied in imported capital goods. We develop a simple theoretical model of endogenous technology adoption, heterogeneous firms and imported inputs. Assuming that imported intermediate goods and high-technology are complementary and the existence of technology adoption fixed costs...

Intermediate product markets are distinct in several ways, including the large size of the transactions, and the ability to price discriminate using buyer-specific prices. We study a competitive intermediate goods market in which there are buyer-specific prices. Using a rich dataset of transactions from the UK brick industry– in which transportation costs play an important role– we estimate a m...

Recent analyses of transaction-level data sets have generated new stylized facts on price setting and greatly in‡uenced the empirical openand closed-economy macroeconomics literatures. This work has uncovered marked heterogeneity in price stickiness, demonstrated that even non-zero price changes do not fully "pass through" exchange rate shocks, and o¤ered evidence of synchronization in the timi...

In recent years, there is an increasingly growth in the transactions of virtual goods among online game players. Few studies have examined the perceived values of virtual goods and how gaming motivation drives the purchase of virtual goods. In this paper, we took one popular online game “World of Warcraft” as a case study, using structural equation model, and explored the relationship between g...

Trade relationships built through production chains appear to be lasting due to relation-specific nature of the transactions, compared with the usual transactions of goods sold on the open market. This paper aims to verify such stability of international production networks at the global level, with special emphasis on intra-East Asian trade. A series of survival analyses provide an evidence su...

Rodrik (JIE 1996) argues for the use of government policy in cases where emerging countries are stuck in a low wage equilibrium because of a coordination failure. His coordination failure arises between downstream producers and their upstream intermediate suppliers when the production of high tech final goods requires a special set of differentiated intermediate goods. To qualify, intermediate ...