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International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 1 Figure 10.1 Avinash Dixit (1944 – )

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Presentation on theme: "International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 1 Figure 10.1 Avinash Dixit (1944 – )"— Presentation transcript:

1 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 1 Figure 10.1 Avinash Dixit (1944 – )

2 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 2 Figure 10.2 Evolution of intra-industry trade

3 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 3 Figure 10.3 Dependence of demand for a variety of manufactures on price and ε. Demand is given by 100 p i - , ε varies (2, 4, and 6)

4 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 4 Figure 10.4 Deviation between assumed demand and reality (a) N=2, (b) N=20, (c) N=200, (d) N=2000, spending on manufactures = 100, price of other firms = 1, ε = 5

5 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 5 Figure 10.5 Production function for a variety of manufactures

6 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 6 Figure 10.6 Intra-industry trade in the Krugman model

7 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 7 Figure 10.7 The Krugman interpretation

8 International Economics: Theory, Application, and Policy, Ch. 10;  Charles van Marrewijk, 2006 8 Figure 10.8 The Ethier interpretation


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