Les conséquences monétaires du Brexit

Aubin, Christian; Diouf, Ibrahima

doi:10.4000/osb.3360

Cited by 1 publication

(5 citation statements)

References 13 publications

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“…, and FE n (4) ) and three times the 120 brand FEs ( FE b (2) , FE b (3) , and FE b (4) ). DEV is feasible here because all the parameters in our model are identified.…”

Section: A Three Methodological Considerationsmentioning

confidence: 99%

“…where the constant, CST (3) is given by (ln κ 2 − ln η) / σ e . The coefficients on the gravity determinants in X int have structural interpretations given by e = − [ (η − 1) d + f e ] / σ e .…”

Section: And Fe Ntmentioning

confidence: 99%

“…First, there is ample evidence suggesting that external (Marshallian) scale economies are important in practice. 3 One well-supported mechanism comes from forward and backward linkages between assemblers and parts suppliers. 4 Second, building external IRS into the cost function allows for important interdependencies across markets without sacrificing tractability, one of the chief attractions of the double-CES MP model.…”

mentioning

confidence: 99%

“…= ln Q nt + ηln P nt − FE nt(3) / σ e . The friction parameters for model entry (needed to compute δ in e ) are obtained from the coefficients on friction determinants, e, combined with variable version of δ costs obtained from the market share equation, using the formula f e = − e σ e − d (η− 1) .…”

mentioning

confidence: 99%

“…Prior work on multinational production omits the two market entry margins, asArkolakis et al (2018) assume single-product firms,Antràs, Fort, and Tintelnot (2017) consider a single market, andTintelnot (2017) assumes that firms offer a unit mass of varieties in every market. The variety-entry extensive margin for multiple-product firms was incorporated in a pure trade model byBernard, Redding, and Schott (2011) 3. Spatial concentration of car production has been an important feature of the industry since its founding, as seen in the production clusters aroundDetroit and Paris.…”

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confidence: 99%

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Brands in Motion: How Frictions Shape Multinational Production

Head

Mayer

2019

American Economic Review

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Following the 2016 Leave vote in the referendum on UK membership in the EU and the election of Donald Trump, trade agreements have entered a period of great instability. To predict the impact of possible disruptions to existing arrangements requires counterfactual analysis that takes into account the complex set of factors influencing the production and marketing strategies of multinational corporations. We estimate a model of multinational decision-making in the car industry. This model predicts the production reallocation and consumer surplus consequences of changes in tariffs and non-tariff barriers induced by US-led protectionism, Brexit, transpacific, and transatlantic integration agreements. (JEL F13, F23, L21, L62, M31)After decades in which free trade agreements proliferated and deepened in scope, 2016 appeared to mark a major turning point. The Leave vote in the UK referendum on EU membership and the election of Donald Trump brought long-standing integration arrangements to the brink of disruption. Pure trade models are ill-equipped for predicting the outcomes of regional dis-integration because they omit an increasingly important feature of the world economy: multinational production (MP). The foreign affiliate structures of multinational corporations (MNCs) complicate matters because they introduce new sets of bilateral relationships. In addition to the origin-destination goods flows of standard trade models, MP models feature interactions between headquarters and subsidiary locations. MNCs must decide which of their network of production facilities will serve each market. Furthermore, because MNCs are typically multiproduct firms, they face decisions over which subset of varieties to offer in each of the markets where they choose to operate distribution facilities. Each of these decisions is likely to be influenced by distinct bilateral frictions.

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“…, and FE n (4) ) and three times the 120 brand FEs ( FE b (2) , FE b (3) , and FE b (4) ). DEV is feasible here because all the parameters in our model are identified.…”

Section: A Three Methodological Considerationsmentioning

confidence: 99%

Section: And Fe Ntmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%