Trade liberalization requires institutional coordination and openness,and is driven by a multitude of factors.This paper simulates endogenous optimal tariffs under different model structures to uncover the underlying ...Trade liberalization requires institutional coordination and openness,and is driven by a multitude of factors.This paper simulates endogenous optimal tariffs under different model structures to uncover the underlying drivers of trade liberalization.Parametric calibration and simulation methods based on the numeric general equilibrium model are employed to estimate the optimal tariff rates of countries with and without trade retaliation.Then,near-reality assumptions are added into the standard general equilibrium model structure,including the cross-border capital flow,multi-country assumption and trade cost,to simulate decreasing optimal tariff rates.The simulation results suggest that world economic development has increased the economic ties and interdependence among nations,making trade liberalization an endogenous optimal choice.The backlash against globalization in recent years is motivated by short-term factors,but will not persist in the long run since it goes against the law of economic growth and socio-economic development.展开更多
This paper analyzes the aritrage free security markets and the general equilibrium existence problem for a stochastic economy with incomplete financial markets. Information structure is given by an event tree. This pa...This paper analyzes the aritrage free security markets and the general equilibrium existence problem for a stochastic economy with incomplete financial markets. Information structure is given by an event tree. This paper restricts attention to purely financial securities. It is assume that trading takes place in the sequence of spot markets and futures markets for securities payable in units of account. Unlimited short selling in securities is allowed. Financial markets may be incomplete: some consumption streams may be impossible to obtain by any trading strategy. Securities may be individually precluded from trade at arbitrary states and dates. The security price process is arbitrage free the dividend process if and only if there exists a stochstic state price (present value) process: the present value of the security prices at every vertex is the present value of their dividend and capital values over the set of immediate successors; the current value of each security at every vertex is the present value of its future dividend stream over all succeeding vertices. The existence of such an equilibrium is proved under the following condition: continuous, weakly convex, strictly monotone and complete preferences, strictly positive endowments and dividends processes.展开更多
基金the sponsorship of the Post-funded Project of Philosophy and Social Science Research of the Chinese Ministry of Education (19JHQ062)the National Natural Science Foundation of China (NSFC) General Program (71572048) for this paper
文摘Trade liberalization requires institutional coordination and openness,and is driven by a multitude of factors.This paper simulates endogenous optimal tariffs under different model structures to uncover the underlying drivers of trade liberalization.Parametric calibration and simulation methods based on the numeric general equilibrium model are employed to estimate the optimal tariff rates of countries with and without trade retaliation.Then,near-reality assumptions are added into the standard general equilibrium model structure,including the cross-border capital flow,multi-country assumption and trade cost,to simulate decreasing optimal tariff rates.The simulation results suggest that world economic development has increased the economic ties and interdependence among nations,making trade liberalization an endogenous optimal choice.The backlash against globalization in recent years is motivated by short-term factors,but will not persist in the long run since it goes against the law of economic growth and socio-economic development.
文摘This paper analyzes the aritrage free security markets and the general equilibrium existence problem for a stochastic economy with incomplete financial markets. Information structure is given by an event tree. This paper restricts attention to purely financial securities. It is assume that trading takes place in the sequence of spot markets and futures markets for securities payable in units of account. Unlimited short selling in securities is allowed. Financial markets may be incomplete: some consumption streams may be impossible to obtain by any trading strategy. Securities may be individually precluded from trade at arbitrary states and dates. The security price process is arbitrage free the dividend process if and only if there exists a stochstic state price (present value) process: the present value of the security prices at every vertex is the present value of their dividend and capital values over the set of immediate successors; the current value of each security at every vertex is the present value of its future dividend stream over all succeeding vertices. The existence of such an equilibrium is proved under the following condition: continuous, weakly convex, strictly monotone and complete preferences, strictly positive endowments and dividends processes.
