Comparative Advantage, Growth, And The Gains From Trade And Globalization: A Festschrift In Honor Of Alan V Deardorff


Book Description

Alan Deardorff was 65 years old on June 6, 2009. To celebrate this occasion, a Festschrift in his honor was held on October 2-3, 2009, in the Rackham Amphitheater at the University of Michigan in Ann Arbor. The Festschrift was entitled “Comparative Advantage, Economic Growth, and the Gains from Trade and Globalization: A Festschrift in Honor of Alan V Deardorff.” It was co-organized by two of Professor Deardorff's former students, Drusilla Brown of Tufts University and Robert Staiger of Stanford University, together with Robert Stern representing the University of Michigan. The first day of the Festschrift involved a series of panels in which invited participants reflected on Professor Deardorff's contributions, including his writings on: comparative advantage; trade and growth; the gains from trade and globalization; and computational modeling and trade policy analysis. The panel participants prepared written comments, setting out their evaluation of Professor Deardorff's contributions combined with their own thoughts on the current state of knowledge and analysis of the particular topic. At the end of the first day, Paul Krugman of Princeton University and The New York Times delivered a Citigroup Foundation Special Lecture entitled “Reflections on Globalization: Yesteryear and Today.” All of these papers and Krugman's lecture are contained in the volume.In order to provide further perspective on the foregoing topics, each section of the volume includes reprints of a number of Professor Deardorff's most important papers that underlie the reflections on his work by the following Festschrift panelists whose original works are presented in this volume:










Handbook of Development Economics


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Handbooks of development economics/ edit. Chenery.-v.1.







MTN studies


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Setting the Trade Policy Agenda


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"Economists have influenced the trade policy agenda for establishing multilateral trade rules, disciplines, and procedures, and for negotiating most-favored nation and preferential reductions in trade barriers and subsidies, in addition to affecting the agenda for unilateral policy reform. These roles are considered in turn, before focusing on the economists' contribution through quantifying the extent and effects of existing trade distortions and alternative reform initiatives. Many trade distortions remain, however, so the author looks at where trade economists' efforts in agenda-setting need to be focused in the years ahead. "--Cover verso.




Defense Spending And Economic Growth


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This book examines the impact defense spending has on economic growth. While defense spending was not deliberately invented as a fiscal policy instrument, its importance in the composition of overall government spending and thus in determining employment is now easily recognized. In light of the collapse of the Soviet Union and the consequent reduction in the threat to the security of the United States, maintaining defense spending at the old level seems indefensible. The media has concentrated on the so-called peace dividend. However, as soon as the federal government is faced with defense cuts, it realizes the macroeconomic ramifications of such a step. Based on studies included in this volume, we examine the effects of defense spending on economic growth and investigate how the changed world political climate is likely to alter the importance and pattern of defense spending both for developed and developing countries.




Trade Costs, Market Integration, and Macroeconomic Volatility


Book Description

This paper examines the effects of trade costs on macroeconomic volatility. We first construct a dynamic, two-country general equilibrium model, where the degree of market integration depends directly on trade costs (transport costs, tariffs, etc.). The model is a extension of Obstfeld and Rogoff (1995). Naturally, a reduction in trade costs leads to more market integration, as the relative price of foreign goods falls and households increase their consumption of imported goods. In addition, with more market integration, the model predicts that the variability of the real exchange rate should fall, while the variability of the trade balance should increase. Trade costs have ambiguous effects on the volatility of other macro variables, such as income and consumption. Finally, we present some empirical findings that provide mixed support for the model's predictions.