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Metzler Paradox
In economics, the Metzler paradox (named after the American economist Lloyd Metzler) is the theoretical possibility that the imposition of a tariff on imports may reduce the relative internal price of that good. It was proposed by Lloyd Metzler in 1949 upon examination of tariffs within the Heckscher–Ohlin model. The paradox has roughly the same status as immiserizing growth and a transfer that makes the recipient worse off. The strange result could occur if the exporting country's offer curve In economics and particularly in international trade, an offer curve shows the quantity of one type of product that an agent will export ("offer") for each quantity of another type of product that it imports. The offer curve was first derived by ... is very inelastic. In this case, the tariff lowers the duty-free cost of the price of the import by such a great degree that the effect of the improvement of the tariff-imposing countries' terms of trade on relative prices exceeds the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics
Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interactions of Agent (economics), economic agents and how economy, economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and market (economics), markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on glossary of economics, these elements. Other broad distinctions within economics include those between positive economics, desc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lloyd Metzler
Lloyd Appleton Metzler (1913 – 26 October 1980) was an American economist best known for his contributions to international trade theory. He was born in Lost Springs, Kansas in 1913. Although most of his career was spent at the University of Chicago, he was not a member of the Chicago school, but rather a Keynesian. Lloyd was the youngest of three sons of Leroy and Lulu Appleton Metzler, who were both schoolteachers and both had college degrees. All three of the boys attended the University of Kansas at Lawrence. Leroy was a civil engineer, and Donald became the head of the engineering department and served as mayor of Lawrence. Lloyd was heading for a degree and career in business until he fell under the tutelage of John Ise, who convinced him to switch to economics, and who was a lifelong hero. After graduation, Metzler received his PhD in Economics at Harvard University, where he became great friends with Paul Samuelson. Metzler worked post-World War II with the Offic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tariff
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. ''Protective tariffs'' are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade. Tariffs can be fixed (a constant sum per unit of imported goods or a percentage of the price) or variable (the amount varies according to the price). Taxing imports means people are less likely to buy them as they become more expensive. The intention is that they buy local products instead, boosting their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products. Tariffs are meant to reduce pressure from foreign competition and reduce th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Import
An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority. The importing and exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions. History Definition Imports consist of transactions in goods and services to a resident of a jurisdiction (such as a nation) from non-residents. The exact definition of imports in national accounts includes and excludes specific "borderline" cases. Importation is the action of buying or acquiring products or services from another country or another market other than own. Imports are important for the economy because they allow a country to supply nonexistent, scarc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Heckscher–Ohlin Model
The Heckscher–Ohlin model (, H–O model) is a general equilibrium mathematical model of international trade, developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics. It builds on David Ricardo's theory of comparative advantage by predicting patterns of commerce and production based on the factor endowments of a trading region. The model essentially says that countries export the products which use their relatively abundant and cheap factors of production, and import the products which use the countries' relatively scarce factors. Features of the model Relative endowments of the factors of production ( land, labor, and capital) determine a country's comparative advantage. Countries have comparative advantages in those goods for which the required factors of production are relatively abundant locally. This is because the profitability of goods is determined by input costs. Goods that require locally abundant inputs are cheaper to produce than th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Political Economy
The ''Journal of Political Economy'' is a monthly peer-reviewed academic journal published by the University of Chicago Press. Established by James Laurence Laughlin in 1892, it covers both theoretical and empirical economics. In the past, the journal published quarterly from its introduction through 1905, ten issues per volume from 1906 through 1921, and bimonthly from 1922 through 2019. The editor-in-chief is Magne Mogstad (University of Chicago). It is considered one of the top five journals in economics. Abstracting and indexing The journal is abstracted and indexed in EBSCO, ProQuest, EconLit , Research Papers in Economics, Current Contents/Social & Behavioral Sciences, and the Social Sciences Citation Index. According to the ''Journal Citation Reports'', the journal has a 2020 impact factor of 9.103, ranking it 4/376 journals in the category "Economics". The journal is department-owned University of Chicago journal. Notable papers Among the most influential papers ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Immiserizing Growth
Immiserizing growth is a theoretical situation first proposed by Jagdish Bhagwati, in 1958, where economic growth could result in a country being worse off than before the growth. If growth is heavily export based it might lead to a fall in the terms of trade of the exporting country. In rare circumstances this fall in the terms of trade may be so large as to outweigh the gains from growth. If so, this situation would cause a country to be worse off after growth than before. This result is only valid if the growing country is able to influence world prices. Harry G. Johnson Harry Gordon Johnson, (26 May 1923 – 9 May 1977) was a Canadians, Canadian economist who studied topics such as international trade and international finance. Nobel laureate James Tobin said about him: "For the economics profession throughou ... had, independently, worked out conditions for this result in 1955.Johnson, Harry G. 1955. "Economic Expansion and International Trade," Manchester School 23, pp. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Offer Curve
In economics and particularly in international trade, an offer curve shows the quantity of one type of product that an agent will export ("offer") for each quantity of another type of product that it imports. The offer curve was first derived by English economists Edgeworth and Marshall to help explain international trade. The offer curve is derived from the country's PPF. We describe a Country named K which enjoys both goods Y and X. It is slightly better at producing good X, but wants to consume both goods. It wants to consume at point C or higher (above the PPF). Country K starts in Autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especially ... at point C. At point C, country K can produce (and consume) 3 Y for 5 X. As trade begins with another country, and country K begins to sp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Terms Of Trade
The terms of trade (TOT) is the relative price of exports in terms of imports and is defined as the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. An improvement of a nation's terms of trade benefits that country in the sense that it can buy more imports for any given level of exports. The terms of trade may be influenced by the exchange rate because a rise in the value of a country's currency lowers the domestic prices of its imports but may not directly affect the prices of the commodities it exports. History The expression ''terms of trade'' was first coined by the US American economist Frank William Taussig in his 1927 book ''International Trade''. However, an earlier version of the concept can be traced back to the English economist Robert Torrens and his book ''The Budget: On Commercial and Colonial Policy'', published in 1844, as well as to John Stuart Mill's essay ''Of the L ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Weltwirtschaftliches Archiv
''Review of World Economics'' is a peer-reviewed quarterly journal of international economics. It is published by Springer on behalf of the Kiel Institute for the World Economy. Under the name ''Weltwirtschaftliches Archiv'', it was founded in 1913 as the world's first journal with a focus on international economics. In 2003, it was renamed to ''Review of World Economics''. The journal's main areas of publication include international trade, international finance, currency systems and exchange rates, monetary and fiscal policies, economic development, and technological growth The history of technology is the history of the invention of tools and techniques and is one of the categories of world history. Technology can refer to methods ranging from as simple as stone tools to the complex genetic engineering and info .... According to the '' Journal Citation Reports'' by Thomson Reuters, the journal has a 2017 impact factor of 1.383, ranking it 18th out of 85 journals ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lerner Paradox
In economics, the Lerner paradox is the theoretical possibility that imposing tariffs raises the world price of the import good, causing a deterioration of the tariff-imposing country's terms of trade.Grossman, G. (2016"The Purpose of Trade Agreements."NBER Working Paper No. 22070, page 13, footnote 12. Abba Lerner showed the possibility in his 1936 article. Conditions In the large country case of a perfectly competitive market, imposing tariffs reduces the world price of the import good, improving the tariff-imposing country's terms of trade. However, under certain conditions, tariffs can have an opposite effect. Therefore, it is called a paradox. *According to Gene Grossman, a Lerner paradox occurs when the government spends most of its tariff revenue to purchase the import good. *According to Pan-Long Tsai, a Lerner paradox occurs when the elasticity of the tariff-imposing country's import demand function is smaller than the government's spending share of its tariff r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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