Constantinos Syropoulos

Constantinos Syropoulos
Drexel University | DU · School of Economics

Ph.D. Economics

About

89
Publications
8,075
Reads
How we measure 'reads'
A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text. Learn more
1,842
Citations
Additional affiliations
August 2005 - December 2012
Drexel University
August 1996 - August 2005
Florida International University
August 1988 - August 1996

Publications

Publications (89)
Article
Full-text available
We study the impact of economic sanctions on international trade in the mining sector. We demonstrate that the gravity equation is well‐suited to model bilateral trade costs in mining and find that sanctions have been effective in impeding mining trade. Complete trade sanctions have reduced mining trade by about 44% on average. We also document sig...
Article
We analyze a dynamic, two-country model that highlights the various trade-offs each country faces between current consumption and competing investments in its future productive and military capacities as it prepares for a possible conflict in the future. Our focus is on the circumstances under which the effects of current trade between the two coun...
Article
On the basis of a single-period, guns-versus-butter, complete-information model in which two agents dispute control over an insecure portion of their combined output, we study the choice between a peace agreement that maintains the status quo without arming (or unarmed peace) and open conflict (or war) that is possibly destructive. With a focus on...
Article
We review a number of developments and trends in the literature on economic sanctions. We discuss salient contributions to the theoretical literature, data collection, and empirical work on the impact, effectiveness and success of sanctions in Economics and Political Science. Our interdisciplinary perspective highlights the existence of a stark con...
Article
On the basis of a single-period, guns-versus-butter, complete-information model in which two agents dispute control over an insecure portion of their combined output, we study the choice between a peace agreement that maintains the status quo without arming (or unarmed peace) and open conflict (or war) that is possibly destructive. With a focus on...
Article
We consider a simple, guns-versus-butter model in which agents choose between “war” and “peace” to study the implications of inequality in resource ownership for equilibrium outcomes. Provided war is destructive, peace can emerge as the stable equilibrium, but only if the distribution of resource ownership is sufficiently even. We establish that, w...
Article
Full-text available
This article introduces the Global Sanctions Data Base (GSDB), a new dataset of economic sanctions that covers all bilateral, multilateral, and plurilateral sanctions in the world during the 1950–2016 period across three dimensions: type, political objective, and extent of success. The GSDB features by far the most cases amongst data bases that foc...
Article
We analyze how trade openness matters for interstate conflict over productive resources. Our analysis features a terms-of-trade channel that makes security policies trade-regime dependent. Specifically, trade between two adversaries reduces each one's incentive to arm given the opponent's arming. If these countries have a sufficiently similar mix o...
Article
Full-text available
Using a new, global data base covering the years 1950 to 2015, we study the impact of sanctions on international trade and welfare. We make use of the rich dimensionality of our data and of the latest developments in the structural gravity literature. Starting with a broad evaluation by sanction type, we carefully investigate the case of Iran. Effe...
Article
Full-text available
This paper analyzes a guns-versus-butter model in which two agents compete for control over an insecure portion of their combined output. They can resolve this dispute either peacefully through settlement or by military force through open conflict (war). Both types of conflict resolution depend on the agents’ arming choices, but only war is destruc...
Article
In this paper, we study alternative forms of conflict resolution, both peaceful and non-peaceful, between two countries that compete for claims to a resource used to produce potentially traded goods. Consistent with the classical liberal argument, peace supports mutually beneficial trade, whereas war preempts it. War always induces countries to all...
Article
We explore the severity of an ongoing dispute over a productive resource within a country that participates in world trade. In addition to arming, the contending groups in our setting choose either to engage in destructive conflict or to settle their dispute peacefully. Our central objective is to characterize the conditions under which the dispute...
Article
We construct a model of conflict and trade to study the consequences of interstate disputes over contested resources (land, oil, water or other resources) for arming, welfare and trade flows. Different trade regimes imply different costs of such disputes in terms of arming. Depending on world prices, free trade can intensify arming to such an exten...
Article
We examine the impact of (and links between) two types of economic integration on the stability of multimarket collusion when firms interact in quantities in segmented markets: (1) multilateral trade liberalization, captured by a reduction of trade costs across all markets; and (2) preferential trade liberalization, captured by an expansion in the...
Article
We examine the impact of (and links between) two types of economic integration on the stability of multimarket collusion when firms interact in quantities in segmented markets: (1) multilateral trade liberalization, captured by a reduction of trade costs across all markets; and (2) preferential trade liberalization, captured by an expansion in the...
Article
Full-text available
In this chapter, we examine how some of the main results in international trade theory fare when we abandon the traditional assumption of third-party enforcement of property rights. Without such enforcement, countries arm and exercise power to secure resources used in production or to secure the output from that production. Because arming is endoge...
Article
In this paper we examine how trade liberalization affects collusive stability in the context of multimarket interactions. The model we consider is a segmented-markets duopoly in which price-setting firms pool their incentive constraints across markets to sustain their most collusive outcome. We find that, when goods are very close substitutes and t...
Article
Full-text available
We augment the canonical neoclassical model of trade to allow for interstate disputes over land, oil, water, or other resources. The trade regime in place has important implications for the costs of such disputes in terms of arming. Depending on world prices, free trade can intensify arming incentives to such an extent that the additional security...
Article
Full-text available
Corruption in the public sector erodes tax compliance and leads to higher tax evasion. Moreover, corrupt public officials abuse their public power to extort bribes from the private agents. In both types of interaction with the public sector, the private agents are bound to face uncertainty with respect to their disposable incomes. To analyse effect...
Article
Full-text available
We argue that the costs of domestic and transnational insecurity are large and economically significant and that they may vary with the trade regime of a country. Then, in evaluating trade regimes, the gains from trade need to be weighed against the change in the security costs they induce. Within a simple model of trade, small countries that impor...
Article
Contrary to conventional wisdom, this article argues that trade liberalization may facilitate collusion and reduce welfare. With the help of a duopoly model in which firms interact repeatedly in multiple markets, we first show that, if trade costs (i.e., tariffs/transport costs) and discount factors are not too high, efficient cartel agreements nec...
Article
Full-text available
The paper develops a dynamic model of scale-invariant global Schumpeterian (R&D-based) growth, North-South trade, and international patent protection. Intellectual property protection takes the form of finite-length and perfectly enforceable global patents awarded to Northern firms that discover new higher-quality products. The model generates prod...
Article
In this paper we examine how preferential trade liberalization affects the terms of trade, external tariffs and welfare of the integrating countries and the rest of the world. Our analysis is based on a three-country, three-good, general equilibrium model with symmetric customs union (CU) members. The model generalizes previous work by considering...
Article
Full-text available
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection a...
Article
When a resource like oil is domestically contested, trade patters and welfare can be very different than when property rights are costlessly enforced. Whereas (small-country) importers of the contested resource gain unambiguously relative to autarky, exporters of the contested resource lose under free trade, unless the world price of the resource i...
Article
We construct a three-country model to determine how the formation of free trade areas (FTAs) affects optimal tariffs and welfare. We find that, at constant rest of the world (ROW) tariffs, the adoption of internal free trade induces union members to reduce their external tariffs below the Kemp–Wan [J. Int. Econom. 6 (1976) 95–97] level, and causes...
Article
Full-text available
This paper constructs a two-country (Home and Foreign) general-equilibrium model of Schumpeterian growth without scale effects. The scale effects property is removed by introducing a distinct specification in the knowledge production function which generates semi-endogenous growth. In this model of semi-endogenous growth, an increase in the rate of...
Article
Full-text available
In this paper, we explore the impact of reciprocal trade liberalization on collusive conduct between domestic and foreign firms interacting in multiple markets. In our benchmark model, which deals with a symmetric homogenous-goods oligopoly, we show that, in the absence of trade barriers, an efficient collusive agreement involves equal division of...
Article
This paper is about the determination of common external tariffs (CETs) in customs unions (CUs). We first examine how the relationship between preferences over CET levels, technology and the distribution of factor ownership in a CU is conditioned by the rule that determines the disposition of tariff revenues. We then explore how majority voting at...
Article
In many economic environments agents make costly and irreversible investments (in “guns”) that may enhance their respective threat payoffs but also shrink the utility possibilities set. In such settings, with variable threats and a variable utility possibilities set, it becomes possible to rank different bargaining solutions in terms of efficiency....
Article
Full-text available
In his seminal work on tariff retaliation, Johnson (Review of Economic Studies, 21, 1953–1954) showed that a country will “win” a bilateral “tariff war” if its relative monopoly/monopsony power in world trade is sufficiently large. However, it is unclear from Johnson's analysis and from subsequent research on the subject how this power is determine...
Article
We examine the effect of insecure property and its accompanying enforcement costs on the efficiency of exchange. Because of the large enforcement costs that may be induced by the expectation of exchange, limited settlement without exchange may be "ex ante" superior for an adversary or even Pareto dominant. We therefore show how the removal of restr...
Article
This paper studies preferences of customs union (CU) members over common external tariff (CET) levels and extends the literature on delegation decisions over trade policy in models with production. In a model with similar CU members, we prove that most--preferred CETs can be ranked with the help of compensated price elasticities of import demand fu...
Article
Full-text available
Sovereign states arm to defend real or hypothetical interests, presumably because they cannot engage in complete, long-term contracting that would prevent such arming. International trade, therefore, takes place within an essentially anarchic context, and we can expect trade regimes and security policies to be related. Indeed, many embargoes, sanct...
Article
This paper builds a model of Schumpeterian growth in which the discovery of higher-quality products is governed by sequential stochastic innovation contests. Incumbent firms producing state-of-the-art-quality products expend resources in activities to protect their rents; challengers raise claims to these rents by engaging in R&D to discover better...
Article
Full-text available
We utilize a three-country trade model to determine the effect of the formation of an FTA on equilibrium tariffs and welfare levels under the assumption that countries choose external tariffs independently to maximize national welfare. We show that the liberalization of internal trade by symmetric member countries causes their optimal external tari...
Article
We construct a three-country, two-bloc, multi-product trade model in which tariff agreements between customs union members are binding whereas inter-bloc tariff agreements are self-enforcing. Our main objective is to explore how the liberalization of trade between customs union members (i.e. the deepening of regional integration) affects the sustai...
Article
Full-text available
In many economic environments agents make costly and irreversible investments that may enhance their respective threat payoffs but also shrink the utility possibilities set. In such settings, with variable threats and a variable utility possibilities set, it becomes possible to rank different bargaining solutions in terms of efficiency. We compare...
Article
This paper introduces a firm-specific Chamberlinian mechanism of income distribution, based on quasi-homothetic preferences, non-homothetic production, and factor-biased internal scale economies in the production of each product variety. We embed this mechanism in the standard two- country, one-sector model of intraindustry trade with two factors o...
Article
This paper constructs a simple, general equilibrium trade model to investigate how the formation of unconstrained, GATT-constrained, and Kemp-Wan customs unions affects interbloc tariffs and welfare. A central point of the paper is that the liberalization of intraunion trade creates incentives for all parties to reduce their remaining tariffs. Desp...
Article
To facilitate the study of contests in general equilibrium, we examine winner-take-all contests in which the prize is complementary to the effort of the contestants, as inputs are in production functions or final goods in utility functions. We focus on the effects of technological factors and endowments on the effort and the welfare of the contesta...
Article
The paper develops a dynamic multi-country, multi-commodity model of Schumpeterian growth, trade, and tariffs. The presence of a nontraded final good sector generates differences in long-run growth across countries. Furthermore, if the growth intensity of the nontraded good is lower than the growth intensity of traded goods, then the liberalization...
Article
The authors examine the distribution of income when agents allocate their initial endowments between production and appropriation (arms investments, influence or rent-seeking activities). Final output depends on the productive contributions of the agents but is divided between them according to their relative contributions in appropriation. Various...
Article
It is generally thought that in long-term relationships high valuations of the future are conducive to cooperation. In an intertemporal model of conflict, however, we demonstrate the possibility of the opposite effect: a longer shadow of the future may harm cooperation. In particular, we show that the degree of inefficiency is positively related to...
Article
We construct an n-country n-commodity trade model to analyze the implications of bloc size for (Nash) equilibrium tariffs and welfare. The relationship between the absolute size of (symmetric) trading blocs and their market power is ambiguous, and we illustrate how this relationship varies with model parameters. In contrast, sufficiently large incr...
Article
The paper constructs a three-country, two-good general equilibrium model to analyze the welfare effects of bilateral trade wars. The presence of a third country (or a number of countries) pursuing free trade policies alters several results based on a two-country framework: Regardless of whether tariffs or quotas are used, bilateral trade wars need...
Article
A simple duopoly model is constructed in which leader-follower relations arise as part of a subgame-perfect equilibrium in a game of endogenous timing. The author shows that, in the absence of policy intervention, cost asymmetries between firms can help sustain collusive hierarchical organization of markets. On the basis of this model, he then anal...
Article
This paper develops the argument that binding voluntary export restraints (VERs) may raise the profits of all firms and the welfare of all trading partners. This possibility is shown to arise in a model of Cournot oligopoly and is consistent with the theory of the second best. VERs benefit unconstrained firms. If the favorable effect due to the inc...
Article
For many years experimental observations have raised questions about the rationality of economic agents--for example, the Allais Paradox or the Equity Premium Puzzle. The problem is a narrow notion of rationality that disregards fear. This article extends the notion of rationality with new axioms of choice under uncertainty and the decision criteri...
Article
In this paper, the authors employ a three-country, two-good, general equilibrium model to analyze bilateral quota wars. It is shown that the presence of a third country or a number of countries that trade freely leads to fundamentally different results of retaliation: bilateral quota wars need not eliminate either multilateral or bilateral trade fl...
Article
Existing work on the costs of insecure property has largely focused on the overexploitation problem of common pool resources. We investigate other costs of insecure resources - including uncertainty costs, lack of tradeability, and conflict - within a setting in which adversaries compete for claims to an insecure resource by making choices between...
Article
This paper analyzes various equilibria associated with intervention in trade in the context of noncooperative policy games with endogenous timing. It is shown that, while the subgame perfect equilibria in quota games always involve sequential play, that is not necessarily the case in tariff games. One implication of the analysis is that, in contras...
Article
This paper considers a foreign oligopoly which dominates an importing country's market with its exports of differentiated products. It constructs a model where firm behavior is endogenously determined in an infinitely repeated game and it analyzes the impact of trade policies on market conduct and welfare. Optimal tariffs, optimal quotas and optima...
Article
Economists most often analyse the effects of protectionist or antidumping policies in the context of tariffs or voluntary export restraints - the latter are very similar to quotas in fact. Antidumping policies in the European Union however make frequent use of price undertakings. Whereas the effects of tariff and quota protection on technology adop...
Article
Full-text available
We explore theoretically and empirically the relationship between intraindustry trade and the wage premium. Our theoretical model features a Chamberlinian-type mechanism of income distribution based on quasi-homothetic consumer preferences, non-homothetic production, and factor-biased scale economies at the firm/variety level. The analysis focuses...
Article
Full-text available
Unlike scholars of international relations and political science, economists have paid little attention to the possible connections between trade openness, inter-state disputes over resources and appropriative competition. This paper addresses this issue in the context of a neoclassical trade model in which two "small" countries that have ownership...
Article
Full-text available
We examine the effect of insecure property and its accompanying enforcement costs on the efficiency of exchange. Because of the large enforcement costs that may be induced by the expectation of exchange, limited settlement without exchange may be ex ante superior for an adversary or even Pareto dominant. We therefore show how the removal of restric...
Article
Full-text available
We contribute to the literature on trade agreements by considering a three-country general equilibrium model with endogenously determined tariffs and exploring how bilateralism [i.e., the formation of a customs union (CU)] affects the feasibility of global free trade. Our analysis reveals that, when internalization of terms of trade externalities i...
Article
H.G. Johnson (1953-54) showed that its is possible for a country to win a two-country tariff war (i.e., prefer tariff retaliation over free trade) and subsequent research on the subject established that a sufficient condition for this possibility is that a country be large enough relative to its trade partner. This paper extends the literature to c...

Network

Cited By