Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/17773 
Year of Publication: 
1999
Series/Report no.: 
Kiel Working Paper No. 907
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
Harrison, Rutherford and Tarr (1997) use a multiregional Computable General Equilibrium (CGE) model with a CES multistage demand system, imperfect competition, increasing returns to scale (IRS), and two endogenous price elasticities of demand perceived by a firm in each national market, in order to quantify the reforms of the Uruguay Round, when firms compete in a quantity setting oligopoly with constant conjectures. This paper argues that the derivation of the price markups is based on two incorrect assumptions, which might affect their empirical results, especially on output and welfare.
Subjects: 
Price markup
Computable General Equilibrium analysis
JEL: 
D43
D58
Document Type: 
Working Paper

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