Philipp J.H. Schröder

Philipp J.H. Schröder
Aarhus University | AU · Department of Economics and Business

About

84
Publications
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Introduction
Philipp J.H. Schröder currently works at the Department of Economics and Business, Aarhus University. Philipp does research in Public Economics, International Economics and Business Economics.

Publications

Publications (84)
Article
We consider a framework in which freedom of the media can alleviate barriers to trade, while in the absence of trustworthy market information, firms optimally withhold part of their export activity and opt for testing-the-waters strategies. We employ data on export flows among a large group of Western and Latin American countries combined with the...
Article
Full-text available
This paper compares the Allowance for Corporate Equity (ACE) tax and the Comprehensive Business Income Tax (CBIT) in a general equilibrium model with firms that face entry costs, fixed production costs and increasing marginal costs. We add the empirical regularity of heterogeneity (productivity and size) among firms and thus capture selection effec...
Article
This paper shows how a specific tax—in contrast to an ad valorem tax—alters industry structure and firm‐level performance in a monopolistic competition framework, where firms chose product quality endogenously and differ exogenously in productivity (i.e., marginal production efficiency). Industry equilibrium mechanisms and selection based on produc...
Article
Isolated single‐month, one‐off export transactions (observed once in a 49‐month window) turn out to be the dominant spell length in granular firm–product–destination trade data. Moreover, on average, for an export‐active firm, such one‐off events generate a significant part of foreign sales. These patterns cannot be explained by the lumpiness of tr...
Chapter
Full-text available
This paper deploys a dynamic extension of the Melitz (Econometrica 71(6):1695–1725, 2003) model to generate predictions on export market exit and firm survival in a setting where firms endogenously make exit decisions. In contrast, previous work typically assumes simple random death. The central driver of the model dynamics—creating the endogenous...
Article
Are Born Globals really different from firms with other start-up histories? We address this question based on a unique longitudinal data set that tracks all Danish manufacturing start-ups founded between 1994 and 2008 (23,201 firms). This novel application of register data allows us to provide the first detailed account of Born Globals compared to...
Article
Volunteer-based open-source production has become a significant new model for the organization of software development. Economics often pictures this phenomenon as a case of signalling: individuals engage in the volunteer programming of open-source software (OSS) as a labour-market signal resulting in a wage premium. Yet, this explanation could so...
Article
The dynamics of export market exit and firm closure have found limited attention in the new heterogeneous-firms trade literature. In fact, several of the predictions on firm survival and exit stemming from this new class of models are at odds with the stylized facts. Empirically, higher productivity firms survive longer, most firm closures are youn...
Article
Contrary to the prevailing interpretation, this paper shows that the central models of trade with heterogeneous firms (Melitz 2003; Bernard et al. 2003) exhibit ambiguous predictions for the exporter productivity premium. This prospect arises because of differences between theoretical and empirical representations of firm productivity. Instead of m...
Article
Full-text available
In an ultra-globalized industry, all existing firms service all markets (beyond partitioning and back to Krugman’s world). Moreover, intense competition may force firms with low productivity to compensate for losses at the home market with profits made on foreign markets. This raises the question: are there still gains from further trade liberaliza...
Article
Temporary migration, though empirically relevant, is often ignored in formal models. This paper proposes a migration model with heterogeneous agents and persistent cross country income differentials that features temporary migration. In equilibrium there exists a positive relation between the stock of migrants and the income differential, while the...
Article
Full-text available
This article examines the political economy of selective immigration policy in a model where decision makers are uncertain about the characteristics of migrants. The analysis focuses on two questions: first, how does a selective immigration policy affect the number of immigrants who are admitted by the receiving country; second, how does a selectiv...
Chapter
Full-text available
There is an increasing focus on and production of university and business school rankings. Constructing institutional rankings is not unproblematic and does not merely entail the choice of elements to incorporate; but also the assignment of relative significance of such elements. While the latter aspect has received much attention by scholars, the...
Article
We posit a rational choice model of dictatorship to explain the tendency of dictators to repress innocent citizens. This model demonstrates that, when the quality of information about regime enemies is low, a rational dictator will knowingly kill and imprison citizens who are not real enemies. We use the formerly secret Stalin archives to test this...
Article
Full-text available
Job market signaling is ranked high among the explanations why individuals engage in volunteer programming of open source software (OSS). Until now, however, the lack of data has prevented investiga-tion of whether volunteer OSS programming leads to a signaling wage premium beyond direct learning effects. Based on a novel and unique data set compri...
Article
Trade liberalization comes about through reductions in various types of trade costs. This paper introduces, apart from real variable (i.e. iceberg) and fixed export costs, two partially redistributed tariffs into a Melitz (2003) model. We present comparable results for welfare effects and changes in industry structure by analyzing the different lib...
Article
Full-text available
nullReal-world industries are composed from heterogeneous firms and substantial intra-industry reallocations take place, i.e. high productivity firms squeeze out low productivity firms. Previous tax-tool comparisons have not included these central forces of industry structure. This paper examines a general equilibrium monopolistic competition model...
Article
nullThis paper investigates the effects of inflows of foreign aid on the debt repayment behaviour of developing countries. The paper first delineates the overall incentives to committing to timely repayment in a war of attrition-type model. A set of panel estimates including 93 developing countries shows that foreign aid is strongly negatively asso...
Article
The marginal costs based representation of firm productivity in the Melitz [Melitz, M.J., 2003. The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71 (6), 1695-1725] model, predicts positive exporter productivity premia. We show that this prediction is reversible when computing the theoretical equi...
Article
WTO negotiations deal predominantly with bound – besides applied – tariff rates. But, how can reductions in tariffs ceilings, i.e. tariff rates that no exporter may ever actually be confronted with, generate market access? The answer to this question relates to the effects of tariff bindings on the risk that exporters face in destination markets. T...
Article
Real-world industries are composed from heterogeneous firms and substantial intra-industry reallocations take place, i.e. high productivity firms squeeze out low productivity firms. Previous tax-tool comparisons have not included these central forces of industry structure. This paper examines a general equilibrium monopolistic competition model wit...
Article
Full-text available
Empirical literature has established a positive link between firm productivity and export status, yet notable exceptions exist. The present paper shows that the underlying theory (Melitz, 2003) is in fact able to accommodate the rule as well as the exception. The fulcrum of the argument is the tension between empirical work measuring productivity b...
Article
The ad valorem versus unit tax debate has traditionally emphasized tax yield. On this criterion, ad valorem taxes outperform unit taxes in terms of welfare for a wide range of imperfect competition settings including Dixit–Stiglitz monopolistic competition. However, in a number of policy fields such as environmental, health, and trade economics, po...
Article
Full-text available
The majority of social science research is conducted within public or semipublic institutions, such as universities. Over the past decades, these institutions have experienced substantial changes in governance structures and an increased focus on performance contracts. Obviously, the new structures do not enter into a governance vacuum, but replace...
Article
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This paper presents a new and simple heterogeneous-firms specification. We develop a symmetric two-country intra-industry trade model where firms are of two...
Article
This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for sitations with outward knowledge spillovers. Within this framework Samuelson's "Act II" effects may occur. Based on industry level panel data for seventeen OECD...
Article
The transition process that started in the Balkans some twenty years ago, and the European association process to which it has been inexorably connected, has led to a radical transformation of the Balkan economic space across local, regional, national and trans-national levels. Amongst the other effects that this have had, was the emergence of new...
Article
Recent rounds of GATT and later WTO have advocated widespread tariffication, meaning that existing non-tariff barriers be converted into import equivalent tariffs. From an economic point of view, the effects of such tariffication are not entirely clear. The paper presents a trade model with monopolistic competition to examine the welfare effects of...
Article
This paper revisits the notion that economic integration—modeled as a reduction of trade costs—may be anticompetitive, in the sense that it may reinforce the ability of an international cartel to maintain a collusive understanding about staying out of each other’s markets. The paper is novel in terms of introducing ad valorem and fixed trade costs...
Article
Full-text available
The entry and success of open source software (OSS), for example, Linux's entry into the operating systems market, has fundamentally changed industry structures in the software business. In this paper we explore the process of OSS innovation and highlight the impact of increased competition and different cost structures on innovative activity in th...
Article
Full-text available
Recent rounds of GATT and later WTO have advocated widespread tariffication, meaning that existing non-tariff barriers be converted into import equivalent tariffs. From an economic point of view, the effects of such tariffication are not entirely clear. The paper presents a trade model with monopolistic competition to examine the welfare effects of...
Chapter
Frequently the shareholders of privatized transition firms also hold stakes in the firm they own. This two-sided role of an agent may give rise to potential conflicts when the restructuring strategy of a firm has to be decided. This shareholder/stakeholder conflict is analyzed in a simple framework including the corporate control dimension of the p...
Book
Open Source Software (OSS) development appears to present a stark contrast to traditional production and innovation methods and an unlikely contestant in the marketplace. Some of the most striking features are that OSS development is based on contributions of volunteer programmers, that these programmers only associated with each other through info...
Article
This papers sheds light on the puzzling fact that even though open source software (OSS) is a public good, it is developed for free by highly qualified, young, motivated individuals, and evolves at a rapid pace. We show that when OSS development is understood as the private provision of a public good, these features emerge quite naturally. We adapt...
Article
International migration is characterized by two puzzling facts: First, only a small share of the population tends to migrate although substantial and persisting income differences across countries exist. Second, net migration rates tend to cease over time despite persisting income differences. This paper addresses these issues in a migration model...
Article
Full-text available
This paper presents a two-country intra-industry trade model with bilateral ad valorem tariffs and fixed export costs that are heterogeneous across firms. In this model not all firms will choose to export. We examine the effects of reciprocal changes in the tariff and the fixed export barrier on the number of firms, firm profits, tariff revenue and...
Article
Full-text available
This paper presents the stylized facts of open source software innovation and provides empirical evidence on the impact of increased competition by OSS on the innovative activity in the software industry. Furthermore, we introduce a simple formal model that captures the innovation impact of OSS entry by examining a change in market structure from m...
Article
Full-text available
This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugmann-type setting. R&D activity is treated as a ficed cost of production. Within this framework, sectors with a higher R&D intensity show a lower price elastici...
Article
WTO negotiations rely on tariff reduction formulas. It has been argued that formula approaches are of increasing importance in trade talks, because of the large number of countries involved, the wider dispersion in initial tariffs (e.g. tariff peaks) and gaps between bound and applied tariff rates. This paper resents a two country intra-industry tr...
Article
The transition process that started in the Balkans some twenty years ago, and the European association process to which it has been inexorably connected, has led to a radical transformation of the Balkan economic space across local, regional, national and trans-national levels. Amongst the other effects that this have had, was the emergence of new...
Article
Full-text available
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This note shows, however, that this added realism also implies that there may exist a positive bilateral tariff that maximizes national and world welfare. Ap...
Article
Full-text available
The ad valorem versus unit taxes debate has traditionally emphasized tax yield. For this criterion, ad valorem taxes outperform unit taxes in terms of welfare for a wide range of imperfect competition settings, including Dixit-Stiglitz monopolistic competition. Yet, in a number of policy fields, such as environmental, health or trade economics, pol...
Article
Actual trade and tariff policy prefers ad valorem tariffs to specific tariffs. Yet in this paper we show that, in a setting of monopolistic competition, realizing a given restriction on imports via a specific tariff would generate more consumer utility than obtaining the same restriction via an ad valorem tariff. JEL classification: F12 Un classeme...
Article
Full-text available
Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets, the green sector may be subsidized or the dirty sector be taxed. We show that in a monopolistic competition setting, the two policy approaches have different welfare effects, depending on the design of the instrument (ad va...
Article
Full-text available
Technical barriers (standards), import licenses and tariffs may be deployed as means of limiting the market access of foreign firms. The present paper examines these measures in a setting of monopolistic competition. We find that, if protection focuses predominantly on the number of foreign firms accessing the domestic market, a technical barrier (...
Article
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This paper shows, however, that this added realism also implies that there may exist a positive bilateral tariff that maximizes national and world welfare. A...
Article
Full-text available
A distinction between real trade costs (e.g., administration, border formalities, transport costs) and tariff costs is introduced into a standard monopolistic competition trade model. Driven by the number of firms, welfare under real trade barriers turns out to be lower than under an equivalent tariff barrier. Based on this finding, the paper shows...
Article
Full-text available
This paper discusses the eastward enlargement process of the EU in the framework of a simple war of attrition bargaining game. Both players ? the existing EU members and the applicants ? benefit from enlargement, yet for the applicants reform to the acquis is costly, while the EU prefers substantially reformed candidates. A waiting game unfolds. Wi...
Article
Full-text available
This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar framework, but under Bertrand competition.
Article
Full-text available
The paper explores theoretically and empirically why trade intermediaries (TIs) are frequently used as agents for exports to some countries but not to others. We adapt a standard intra-industry trade model with variable export costs (e.g. transport) and fixed export costs (e.g. market access) to include a TI that is able to pool market access cost....
Article
Full-text available
In the literature on privatisation and restructuring it is a generally held belief that manager owned firms will be restructured more rigorously than worker owned companies. This gives the clear recommendation that property rights and control rights should be allocated to managers in the process of (insider-) privatisation. One of the implied argum...
Article
Full-text available
Economic integration has had ambiguous effects on industry concentration. The literature on the topic proposes various explanations for these empirical findings. This paper provides an additional theoretical argument. It shows that in a world of monopolistic competition, integration alone (modeled as a reduction of trade barriers) may exert opposin...
Article
Full-text available
This paper responds to arguments made in filings in the FCC’s broadband openness proceeding (GN Dkt. 09-191) and incorporates data made available since my January 14th filing in that proceeding. Newly available data confirm that there is limited competition in the broadband access marketplace. Contrary to some others’ arguments, wireless broadband...
Article
Full-text available
Open source software (OSS) is a public good. A self-interested individual would consider providing OSS if the benefits to be gained from it justify the cost of programming. Nevertheless, each agent is tempted to free-ride and wait for others to develop the software instead. We model this problem as a war of attrition with complete information, job...
Article
Recent rounds of GATT and later WTO have advocated widespread tariffication, meaning that existing non-tariff barriers be converted into import equivalent tariffs. From an economic point of view, the effects of such tariffication are not entirely clear. The paper presents a general equilibrium model with monopolistic competition to examine the welf...
Article
Under the assumption of purely additive transaction costs in exchange, the literature on money has a standard example of direct exchange dominating indirect (monetary) exchange. From here, it is frequently concluded that subadditive costs (e.g., search costs) must be examined in order to explain the institution or origin of money. In contrast, this...
Article
Full-text available
Economic integration in Europe has had ambiguous effects on industry concentration. The literature has proposed various explanations of the empirical findings. The present paper provides an additional theoretical argument. We show that in a world of monopolistic competition, integration in it self (modelled as a reduction of trade barriers) generat...
Article
Governments of transition economies are subject to a fiscal constraint (e.g. credit constraints). However, exaggerated fiscal discipline might feed into the structural adjustment process. The government designs and times the privatisation programme yet may find itself in a fiscal squeeze, because, restructuring moves costs from firms to the public...
Article
Restructuring transition enterprises has been slow. Many firms remain unprivatized and the new owners (of privatized firms) take inadequate measures. Various arguments often have been brought forth to explain this sluggish adjustment. This paper identifies a structural barrier at the governmental level: The government designs the privatization prog...
Article
In a model where privatisation of inefficient SOE's is performed by allocating shares to different types of agents in society we analyse the conflict between shareholder and stakeholder interests. In particular, some of those that receive shares in a firm, that suffers from inefficiency, do have a stakeholder interest in the same inefficiency. Addi...
Article
The literature on media of exchange has a standard example of indirect exchange being dominated by direct exchange. This case occurs under the assumption of additive transaction costs. Hence, without additional cost assumptions, the agents would prefer direct exchange. From here it is frequently concluded that other costs (or settings e.g. incomple...
Article
Full-text available
While many trade barriers have been reduced in recent years, contingency trade policy barriers have tended to take their place in many countries. Anti-dumping measures can be legitimate protection against predatory pricing but often constitute important trade barriers. Consequently, some industries lobby for such measures when facing particularly c...
Article
Full-text available
Bjørnskov), philippmeinen@gmx.de (Meinen), jum@asb.dk (Nielsen) and psc@asb.dk (Schröder). Abstract: While many trade barriers have been reduced in recent years, contingency trade policy barriers have tended to take their place in many countries. Anti-dumping measures can be legitimate protection against predatory pricing but often constitute impor...
Article
The proposal of long-term EMU enlargement imposes - willingly or not - a fiscal constraint on transition governments today. However, exaggerated fiscal discipline might feed into the privatisation process, potentially resulting in slow privatisation and restructuring of transition enterprises. The mechanism at work is the following: The government...
Article
WTO negotiations rely on tarifi reduction formulas. It has been argued that formula approaches are of increasing importance in trade talks, because of the large number of countries involved, the wider dispersion in initial tarifis (e.g. tarifi peaks) and gaps between bound and applied tarifi rates. This paper presents a two country intra-industry t...
Article
In a setting of imperfect competition, this paper shows that realizing a given level of imports via a specific tariff generates more consumer utility than an equivalent restriction with an ad valorem tariff. Yet, in terms of tariff revenue this ranking is reversed.
Article
Recently the workhorse model of intra-industry trade has been augmented by heterogeneous cost structures at the flrm level. In principle there may exist various sources of heterogeneity, such as flxed or marginal cost heterogeneity, yet the literature appears to settle on the latter. The present paper develops a simple, unifled model framework perm...
Article
Full-text available
Recently the workhorse model of intra-industry trade has been augmented by heterogeneous cost structures at the firm level. In principle there may exist various sources of heterogeneity, such as fixed or marginal cost heterogeneity, yet the literature appears to settle on the latter. The present paper develops a simple, unified model framework perm...
Article
Full-text available
Trade liberalization comes about through reductions in var-ious types of trade costs. This paper includes, apart from real (also called frictional) variable and fixed export costs, a lump-sum redistributed tariff into a Melitz (2003) model. We present comparable results for welfare effects, changes in industry struc-ture, and changes in productivit...
Article
Full-text available
This essay deals with the issues of privatisation and restructuring in transition economies. The topics are addressed in both a descriptive and empirical manner. The centre of the analysis is the interrelation of privatisation, the resulting ownership form and the expected and actual effect on restructuring behaviour of firms. The essay identifies...

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Projects (2)
Project
Culture, Practice and European Policy is a open access multi-disiplinary journal series published semiannually. CPEP seeks to enhance understanding of social, trans-national activities and processes in Europe.