Richard K. Anderson

Product Quality and Price Regulation: A General Equilibrium Analysis

Utilizing a general equilibrium framework, this paper studies the economic effects of price regulation in competitive market structures. The analysis considers both the short-run and long-run implications of price regulation upon factor rewards and allocaticns and upon the production of quality. It also characterizes the adjustment path to a competitive long-run equilibrium. The positive relation between regulated price and the production of quality is described, and the identification of who gains and who loses and how resource allocations are affected is shown to depend upon factor intensity rankings.

Morishima elasticities of substitution with nested production functions

Abstract Nested, multi-stage, production technologies are distinguished by two distinct types of substitution: intraprocess and interprocess. This paper develops Morishima elasticity measures for each, shows the relation between the Morishima and Allen-Uzawa substitution elasticities, and applies the analysis to domestic content protection.

The theory of tariffs in a monetary economy

Abstract A two country two commodity model of international trade in a monetary context is utilized for the re-evaluation of the classical propositions in international trade theory which are usually derived under barter. A comparison of results under alternative exchange rate regimes is given. The effects of tariffs on the balance of payments and on domestic price levels is also studied.

Substitution and complementarity with nested production

Abstract Nested technologies, generated by weakly separable production structures, are pervasive in multi-stage processes. This letter utilizes duality to isolate three distinct effects of price-induced changes in factor demand to analyze substitutability and complementarity; economic implications for domestic content are noted.

Product quality regulation: a general equilibrium analysis

Utilizing a general equilibrium framework, this paper studies the economic effects of product-quality regulation in competitive ma rket structures. The analysis considers both the short-run and long-r un implications of such regulation upon factor rewards and allocation s and upon product price. It also characterizes the adjustment path t o a competitive long-run equilibrium. The positive relation between r egulated quality and product price is described, and identification o f who gains and who loses and how resource allocations are affected i s shown to depend upon factor intensity rankings.

Lerner symmetry and trilateral relations in international monetary economics

Abstract The classical Lerner symmetry theorem concerning the equivalence of import and export tariffs is extended to a monetary economy under flexible exchange rates. Under fixed exchange rates, this should be replaced by the trilateral-relation theorem. The Meade theorem is also extended.

Product quality regulation in open economies: Implications for trade

Abstract The presence of quality and safety regulations provides an explanation for comparative advantage and the basis for trade in regulated open economies. This paper investigates these trade issues in a factors-specific model of quality regulation.