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- W177580343 abstract "This chapter discusses micro model extensions. It highlights the expressions for the home–foreign substitution parameter that are capable of direct estimation on the basis of very limited information, using the general techniques. Microeconomic models are used to analyze multinational firm behavior but where the emphasis is slightly different. In the analyses described in the chapter, it was assumed that cost structures are such that the elasticity of output with respect to marginal cost is constant. The realization of a given home production share of sales in the face of high tariffs implies a greater foregone domestic output. There are a number of additional refinements that invite inclusion in the analysis—the treatment of multiperiod cases, multiproduct technologies, and financial aspects such as joint ownership and the use of multiple currencies—all of which would move the model in the direction of greater realism. The implications of particular strong assumptions about the shape of cost and demand curves should at some point be explored in depth. Obtaining a closed form expression for the substitution parameter in a considerably more general model would at best be very difficult. More complex models also promise to vastly outstrip the limited data resources that are currently available. All of these point to the pressing need for more extensive, timely, and reliable data collection in this area." @default.
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- W177580343 date "1978-01-01" @default.
- W177580343 modified "2023-09-26" @default.
- W177580343 title "Micro Model Extensions" @default.
- W177580343 doi "https://doi.org/10.1016/b978-0-12-265050-5.50007-8" @default.
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