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Extensive Margin (extensive + margin)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	83%

Selected Abstracts

External Imbalances and the Extensive Margin of Trade

ECONOMIC NOTES, Issue 3 2008
Vahagn Galstyan
We quantify the role of the extensive margin in the recent trade dynamics of selected countries that are running large and persistent trade imbalances. We find that the role of the extensive margin is quite substantial, although it varies in significance across the countries in the sample. Finally, we highlight differences in behaviour between the fixed-varieties and varieties-adjusted terms of trade. [source]

The economics of land-use regulation in the presence of an externality: a dynamic approach

OPTIMAL CONTROL APPLICATIONS AND METHODS, Issue 1 2007
Renan U. Goetz
Abstract Land-use restrictions are frequently applied to separate non-polluting from polluting activities. In contrast to the existing literature, we simultaneously incorporate spatial and intertemporal aspects of the problem and endogenously determine the border of the zones. Intensity-orientated instruments alone, such as a spatially differentiated tax on inputs or outputs, are not able to support the socially optimal outcome and need to be complemented by instruments that affect choices at the extensive margin such as positive or negative land-use taxes or land zoning. The necessary changes required to transform a spatially optimal, yet static, environmental policy into an intertemporally and spatially optimal environmental policy are presented and discussed. Copyright © 2006 John Wiley & Sons, Ltd. [source]

China's Penetration of the Korean Market: Stylized Facts and Welfare Effect

CHINA AND WORLD ECONOMY, Issue 5 2010
Kichun Kang
F10; F14 Abstract China's penetration of the world market has been impressive. This paper uses highly disaggregated Korean import data (from 1992 to 2008) to examine China's penetration of the Korean market in the context of the composition of value (the extensive and intensive margins) and the product type (homogeneous and differentiated) in trade. The increase in Chinese imports has been attributed to the rapid increase in the import of new products (the extensive margin) and of existing products (the intensive margin). However, the growth rate of new products decelerated in the 2000s. The growth in the intensive margin was due to quantity, not price. Chinese imports to Korea did not improve over the period in terms of quality. Although Chinese products became cheaper, they were more differentiated over time. Welfare gains were realized through the expanded introduction of new products from China. However, much of the gains from Korea's Chinese product import boom were realized in earlier years (1992,2000) because even though imported products became more differentiated, the increase in the extensive margin was lower in more recent years (2001,2008). [source]

Welfare reform in European countries: a microsimulation analysis,

THE ECONOMIC JOURNAL, Issue 516 2007
Herwig Immervoll
This article compares the effects of increasing traditional welfare to introducing in-work benefits in the 15 (pre-enlargement) countries of the European Union. We use a labour supply model encompassing responses to taxes and transfers along both the intensive and extensive margins, and the EUROMOD microsimulation model to estimate current marginal and participation tax rates. We quantify the equity-efficiency trade-off for a range of elasticity parameters. In most countries, because of large existing welfare programmes with high phase-out rates, increasing traditional welfare is undesirable unless the redistributive tastes of the government are extreme. In contrast, the in-work benefit reform is desirable in a very wide set of cases. [source]

Structural gravity equations with intensive and extensive margins

CANADIAN JOURNAL OF ECONOMICS, Issue 1 2010
Matthieu Crozet
Abstract Recent trade models with heterogeneous firms have changed the interpretation of gravity equations. Chaney (2008) shows that the effect of distance on the number of exporters and average exports depends on key parameters characterizing the elements of market structure. We use firm-level export data to estimate the structural parameters of Chaney's model. Controlling for the fixed costs of exporting, our estimated parameters match, for 28 out of 34 industries, the model's theoretical predictions. Our industry parameters allow us to evaluate separately the effect of transport costs and tariffs on trade, without having to resort to detailed data on trade frictions. Les modèles de commerce international avec firmes hétérogènes ont modifié l'interprétation des équations de gravité (Chaney 2008). L'effet de la distance sur le nombre d'exportateurs et la valeur moyenne exportée dépend d'un ensemble de paramètres caractérisant l'organisation du marché. Cet article mobilise des données individuelles sur les exportateurs français pour conduire une estimation structurelle de ces paramètres. Il confirme la pertinence du cadre théorique; pour 28 secteurs sur 34, les paramètres estimés sont conformes aux attentes théoriques. Il montre aussi que les coûts de transport ont un impact très différent de celui des droits de douanes, et que l'impact de l'ouverture commerciale dépend fortement de l'organisation des marchés. [source]