Douglas R. Nelson, known for his classes on International Trade, will serve this summer as the Adam Smith Professor of Economics and Philosophy at the University of Bayreuth, Bavaria, Germany.
His research will center on two projects. First is a joint project with Hartmut Egger (of the University of Bayreuth) and Peter Egger on incorporating corporate governance regimes in a general equilibrium model of international trade. Specifically, in a generalized oligopolistic equilibrium model, consider two countries. In one labor is represented on the board, which negotiates with labor over distribution of profits; in the other labor is not represented on the board. This effects the payoffs from engaging in trade.
The second project seeks to study the effect of changing costs of outsourcing on willingness of firms to support multilateral trade liberalization. This project is developed in a two-country, heterogeneous firms model of general equilibrium. In this case, for firms with sufficiently high productivity to gain from outsourcing, that option reduces the need for the WTO and, thus, the willingness to invest in politics at the margin. The affects the equilibrium level of liberalization via a Grossman-Helpman Trade Wars/Trade Talks model.
More details on Doug’s activities can be found on his Tulane website, at http://www.tulane.edu/~dnelson/.
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