We examine the price dynamics in Indian cities using cointegration analysis. We identify and then calculate a common trend for prices in these 25 cities. We obtain the impulse response functions to calculate the rates of convergence to the prices, and find that the half-life of any shock is very small for Indian cities. Although a close to three-month half-life seems too fast, there are some in...

The paper considers the location of two industries in two countries. Both industries are imperfectly competitive, producing goods for final consumption and use as intermediates. Intermediate usage creates cost and demand linkages between firms, encouraging industrial agglomeration. With high trade barriers each industry operates in both locations in order to supply final consumers. At lower tra...

This paper investigates the implications for international markets of the existence of retailers/wholesalers with market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in autarky, thus reversing the standard e¤e...

Using annual bilateral data over the period 1988-2011 for a panel of 24 industrialised and emerging economies, we analyse in a time-varying framework the determinants of output synchronisation in EMU (European Monetary Union) distinguishing between core and peripheral member states. The results support the specialisation paradigm rather than the endogeneity hypothesis. Evidence is found in the ...

To explain the links between population distribution and economic integration, we construct a spatial economics model with endogenous fertility. A higher population concentration increases real wages and child-raising costs, thus lowering the fertility rate. However, people migrate to more populated regions to obtain higher real wages. We show that mobility across regions results in more people...

This essay reflects the thoughts and experience of two staff members. Mark Allen has been a resident representative in both Poland (1990–93) and Hungary (1996–1998), two countries that have moved well along the road of transformation. Rick Haas was the resident representative in Belarus (1996–98), a country where much remains to be done. In some respects they had similar experiences, in others ...

Yes. A country’s suitability for EMU entry depends on the intensity of trade with EMU members, and the extent to which its business cycles are correlated with those of other members. But both international trade patterns and international business cycle correlations are endogenous. Theoretically, economic integration has an ambiguous effect on the degree to which business cycles are correlated ...

This paper discusses the impact of foreign direct investment (FDI) on market entry and welfare. It assumes that firms may enter markets in the first period as national firms only. In the second period, however, FDI is possible. The paper demonstrates that FDI reduces market entry because equilibrium profits in the second period decline with a decrease in the fixed cost of FDI. Therefore, compar...

In this appendix, we survey some of the major developments in the theory of free lattices and certain related topics. J. Ježek, J. B. Nation, and I have completed a monograph on the subject [F15], which contains the proofs of most the results here. The first chapter of this monograph is suitable as an introduction to the theory of free lattices. It also contains more details of the interesting ...

The symmetric quark model with harmonic forces is shown to lead to a rapid change with q2 of the helicity structure for elec troproduction of the second (D13) and third (F15) nucleon resonances. Preliminary results of coincidence measurements of pi-zero electroproduction in the resonance region are found to disagree with this prediction. Some further experimental tests and theoretical consequen...