Trade Policy with Imperfect Markets
{'Code': '04050100', 'Directorate': {'Abbreviation': 'SBE', 'LongName': 'Direct For Social, Behav & Economic Scie'}, 'Division': {'Abbreviation': 'SES', 'LongName': 'Divn Of Social and Economic Sciences'}}
{'SignBlockName': 'Daniel H. Newlon', 'PO_EMAI': None, 'PO_PHON': None}
The recognition of uncertainty and imperfect competition has led                to a substantial rethinking of the economic theory of                           international trade and commercial policy.  This project aims to                expand the frontiers of this research in four broad areas, the                  themes of which evolve naturally from the author's previous work.                                                                                               A. Hysteresis in Trade:  When firms must incur costs to enter and               leave a market, transient currency misalignments have persistent                effects on import volumes and prices.  Previous models of this                  phenomenon were oversimplified and unrealistic.  The proposed                   research has simple but more realistic descriptions of exchange                 rate movements (notably Brownian motion).  Some results for                     competitive firms have been obtained; future work will include                  imperfect competition, and examine related policy issues like oil               import taxes.                                                                                                                                                   B. International R &amp; D Competition:  Since R &amp; D is inherently                  risky, good analysis of policy in this area must employ a                       stochastic dynamic game model.  Such a model is formulated; the                 research will consist of extensive numerical computations                       necessary to solve it.  Hypotheses about the intensity and the                  riskiness of strategies appropriate for leaders and laggards in                 the R &amp; D race will be tested.  The design of trade and subsidy                 policy for high-tech industries will be examined.                                                                                                               C. International Policy Conflict and Coordination: The main issue               to be researched is the avoidance of Prisoner's Dilemmas:  the                  standard tariff retaliation war for competitive industries, and                 the strategic import tariff or export subsidy for oligopolies.                  Prisoners' Dilemmas over many dimensions of trade policies, and                 games of bargaining to divide the potential gains from trade                    liberalization, will be studied.                                                                                                                                D. Trade Policy Under Uncertainty:  Markets for pooling and                     allocating risk are often incomplete, especially in LDC's.                      However, casual arguments that advocate the use of trade                        restrictions for insurance do not survive rigorous analysis. More               precise formulations of the market failures, and appropriate                    policy responses, will be studied.
{'FirstName': 'Avinash', 'LastName': 'Dixit', 'PI_MID_INIT': 'K', 'PI_SUFX_NAME': None, 'PI_FULL_NAME': 'Avinash K Dixit', 'EmailAddress': 'dixitak@princeton.edu', 'NSF_ID': '000094042', 'StartDate': '08/01/1988', 'EndDate': None, 'RoleCode': 'Principal Investigator'}
{'Name': 'Princeton University', 'CityName': 'PRINCETON', 'ZipCode': '085442001', 'PhoneNumber': '6092583090', 'StreetAddress': '1 NASSAU HALL', 'StreetAddress2': None, 'CountryName': 'United States', 'StateName': 'New Jersey', 'StateCode': 'NJ', 'CONGRESSDISTRICT': '12', 'CONGRESS_DISTRICT_ORG': 'NJ12', 'ORG_UEI_NUM': 'NJ1YPQXQG7U5', 'ORG_LGL_BUS_NAME': 'THE TRUSTEES OF PRINCETON UNIVERSITY', 'ORG_PRNT_UEI_NUM': None}
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{'Code': '1320', 'Text': 'Economics'}
{'url': 'https://www.nsf.gov/awardsearch/download?DownloadFileName=1988&All=true', 'xml': '8803300.xml'}