Satya Das

Satya Das
University of Illinois, Urbana-Champaign | UIUC · Department of Economics

Ph.D.

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75
Publications
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999
Citations

Publications

Publications (75)
Preprint
Full-text available
Gravity models have been extensively used as workhorse models to study the determinants of international trade. While most of the literature has focused on trade in manufacturing, a recent literature has emerged that uses gravity models to study international trade in services. Despite showing that gravity equations are well suited to studying trad...
Article
Purpose – This paper aims to understand the impact of land acquisition and the provision of rehabilitation and remuneration (R & R) transfers included in it, toward the short-run and the long-run growth of an economy as well as on the welfare of farmers and industrialists over time. Design/methodology/approach – The authors develop a two-sector mo...
Article
This paper aims to explain why and how the service sector may grow faster than manufacturing. It develops a two-sector, closed-economy model, having a manufacturing sector and a service sector. Accumulation of human capital serves as the basis of growth. The analysis focuses on business services, while household services are also considered. It is...
Article
Purpose – The purpose of this paper is to develop a political-economy model to show how political imperatives lead to reforms in administering direct tax collection. Design/methodology/approach – A static, political-gain approach was used to model employment in the tax collection sector and then the implications of an increase in revenue pressure w...
Article
Full-text available
The paper builds an argument that international trade can be an explanation behind polarization of employment in the labor market observed in developed countries such as UK and US It considers a small open economy, having production sectors which use three types of labor: high-skill, middle-skill and low-skill. The economy faces an increase in the...
Article
Full-text available
The paper examines the effect of freer North–South trade in goods on pollution, commodity terms-of-trade and national welfare, utilizing a factor endowment framework. North and South are distinguished in terms of the relative endowment of a pollution causing natural resource: South is relatively more resource abundant. Compared to the analysis of C...
Article
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The paper presents an economic model of interaction between cricket boards, players and international club-line games sponsors like ICL or IPL. It attempts to capture the inherent conflict between such games and country-line games traditionally organized by cricket boards. It identifies the nature of various trade offs facing these players' in the...
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This paper develops a human-capital-based endogenous growth scenario in which an economy initially produces the agricultural good, characterized by diminishing returns to scale, then produces `traditional manufacturing' under constant-returns and finally produces `modern manufacturing' under increasing-returns. Transition dates are endogenous and d...
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We develop a game-theoretic analysis of terrorism that examines the interaction between a terrorist organization and multiple target countries, and considers both pre-emption and deterrence as counter-terrorist policies. The damage from terror includes not only the material cost of fatality, injury and loss of property, but also the resultant fear....
Article
There is empirical evidence of cycles in transnational terrorist activities over time. The existing informal and formal works on terror cycles suggest that some form of interaction between the actions of a terrorist organization and a defending state is necessary for cycles to occur. This paper attempts to initiate a systematic investigation into s...
Article
A static game-theoretic model is developed to examine the post-9/11 interaction between the higher-education sector and the visa authority. We analyze the determination of the sponsorship of foreign scholars by the former and of visa scrutiny level by the latter, when some of the applicants, unknown to either party, are potential terrorists. When s...
Article
This paper analyzes the problem of child labor in an infinite-horizon dynamic model with a variable rate of time preference and credit constraints. The variability in the rate of time preference leads to the possibility of multiple steady states and a poverty trap. The paper considers the long-run and short-run effects of an array of policies like...
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The paper examines how international trade affects long-run distribution of wealth and income. Given a child's ability, the wage differential and the interest rate, a parent decides whether or not to educate the child and how much to borrow or lend. Trade, by affecting the wage differential, influences the interest rate, the proportion of populatio...
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Abstract The majority of the trading blocs to date are between similar countries, rather than between developed and developing countries. This paper provides a rationale for why trading blocs among similar countries may arise as an equilibrium phenomenon. It develops a model of an asymmetric world economy in which there are at least four countries....
Article
This paper develops a model of terrorist activity and behavior. A terrorist organization chooses the size and the number of attacks. The defending state chooses the level of security-deterrence measures. The equilibrium sequence is such that the Organization moves first, followed by the State. A defensive policy such as an innovation in security-de...
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Full-text available
This paper examines the issue of the effect of international trade on quality choice by firms in a factor-endowment framework. Factor price equalization implies product quality equalization. In the North-South context it means that the South catches up with the North in product quality due to the competitive pressure from international trade, not b...
Article
This paper examines the effect of vertical diversity in workers' skill on the long-run growth rate of an economy. It uses a two-sector model where the technology of the consumption-good sector is supermodular and that of the R&D sector is submodular. By adopting Grossman and Maggi's (2000) model to a framework of growth, it shows first that diversi...
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This paper investigates the effects of gradual trade liberalization on intra-country and inter-country inequality. It assumes two countries, North and South, and two factors, skilled labour and unskilled labour. North is defined as the one that is relatively skilled-labour abundant and larger. A marginal trade liberalization from autarky is shown t...
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Full-text available
This paper examines the effect of an increase in vertical diversity in workers' skill on the long run growth rate of an economy. It uses a two-secror model where the techonology of the consumption-good sector is supermodular and that of the R&D sector is submodular. By adopting Grossman and Maggi's(2000) model to a framework of growth based on R&D,...
Article
Full-text available
This Paper develops a dynamic, theoretical model of demand for money under decreasing marginal impatience (DMI).Given certain conditions, the steady state is shown to be saddle-path stable and unique. It is shown that, under DMI, an increase in income inequality increases the aggregate demand for money. Empirical evidence supporting this hypothesis...
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In comparison to the standard literature on inequality and growth which assumes the former to be exogenous, we formulate a model in which inequality and growth are both endogenous. Long-run distribution, at least locally, is shown to be independent of the initial distribution of factor ownership. It is shown that exogenous policy changes that are p...
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This paper analyzes child labor in a fully dynamic model with credit constraints. It considers the ong-run and short-run effects of an array of policies like lump-sum subsidy, enrollment subsidy, improvement in primary education and variations in loan market parameters. It is shown that some policies that reduce child labor in the long run may lead...
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Full-text available
In the strategic trade policy literature, the firms typically make positive profits at equilibrium policy levels. We show that this is not always true when firms from the developed (North) and developing (South) countries compete in the Northern market. In particular, the South firm may be pushed out of the Northern market. On the other hand, the N...
Article
In the presence of international joint ventures, effects of policies like foreign equity cap, trade protection and domestic resource requirement restriction towards equity sharing and welfare are analysed. Foreign equity cap reduces host country's welfare. Trade protection lowers equity share for the local firm. It has a first-order source of welfa...
Article
The effects of trade among similar countries and that among dissimilar countries on the relative wage are examined. Product quality is a choice variable by firms. Quantity production is assumed to satisfy constant costs, while quality production is more skilled-labor intensive than quantity production and obeys increasing costs. Compared to autarky...
Article
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
Full-text available
This paper generalizes the analysis of distributive conflict, politics, and growth developed by by Alesina-Rodrik (1994). We construct a heterogenous-agent framework in which both growth and the distribution of wealth are endogenous. Due to adjustments in the distribution of wealth, the composition of factor ownership across households equalizes in...
Chapter
The paper examines the effects of freer North-South trade in goods on pollution and national welfare. North and South are distinguished in terms of the relative endowment of a pollution causing natural resource: South is relatively more resource abundant. Taking into account the commodity terms-of-trade effect of environment policy change, unlike C...
Article
The formation of international mergers is examined in the presence of two kinds of asymmetric information, one when a local firm has private information on market size and the other when a foreign firm has private information on its technology. In each situation, parametric configurations are identified under which a merger offer may or may not be...
Article
The effect of trade on relative wages is examined taking into consideration some aspects of internal organization of firms, namely, the twin function of production and supervision by skilled workers. When trade is based on endowment differences, the effect of trade is greater than is predicted by the Stolper-Samuelson theorem. When trade is based o...
Article
The effect of international trade on personal distribution of wealth and income is examined via the Stolper–Samuelson Theorem. It is shown that free trade between North and South increases (decreases) wealth and income inequality in the North (South). A concept of three classes – lower, middle and upper – is developed. It is shown that North–South...
Article
The paper examines the optimal pollution standard for a large open economy. Using a two-country partial-equilibrium framework, the optimal standards are characterized for autarky, free trade, and free trade together with cooperation among countries in setting standards. If pollution is local, at the free-trade equilibrium, the exporting country imp...
Article
This paper examines the political economy of trade policy in the context of a small open economy. Factor ownerships vary over time. At each point of time, trade policy is set according to the median voter's preference. In the long-run, both trade policy and distribution of wealth and income are endogenous. The paper investigates how these are affec...
Article
With hedgefunds, managers develop risk management models that mainly aim to play on the effect of de correlation.In order to achieve this goal,companies use the correlation coefficient as an indicator for measuring dependencies existing between(i)the various hedge funds strategies and share index returns and(ii)hedge funds strategies against each o...
Article
The link between trade among similar countries and personal distribution of income and wealth is explored, with heterogeneous savings rates among households (dynasties) being the source of inequality. The real effect of trade occurs through greater oligopolistic competition and scale economies. The distribution of capital, and hence income distribu...
Article
This paper examines the political economy of trade policy in the context of a small open economy, when factor ownerships are variable. The median voter hypothesis is used. In the long run, both trade protection and distribution of wealth and income are endogenous, and the paper investigates how these are affected by basic parameters like terms of t...
Article
This paper examines the choice among alternative modes of direct foreign investment, namely, the wholly owned subsidiary (the S option) and joint venture (the J option), vis-a-vis licensing (the L option). The focus is on the role of moral hazard, difference in risk attitude and the prospect of the host country's policy toward the venture. An appar...
Article
This paper examines the choice problem facing a multinational firm, whether to establish a wholly owned subsidiary or form a joint venture with a firm from the host country, as the mode of direct foreign investment. It is shown that, all other considerations aside, the prospect of policy variation toward the venture (restrictive or conducive), whic...
Article
This paper examines the implications of delegation of quantity or price setting power to the managers by the firm owners, for trade policy. Delegation reduces the scale of strategic trade policy in an exporting industry. In an import-competing oligopoly industry, the optimal tariff is less or greater than the standard optimal tariff depending on wh...
Article
This paper presents a simple model of industry dynamics with entry adjustment costs. These costs imply a non-instantaneous adjustment path to the steady state, so that the model permits the short-run and long-run characterization of industry dynamics in a single framework. The type of the steady state (zero entry and exit or positive entry and exit...
Article
Positive and normative aspects of trade policy are examined when firms offer incentive pay to workers, such as piece-rate pay and profit sharing, to deal with worker moral hazard. Protection increases the incentive pay rate. Its effect on effort depends upon the degree of labor mobility and the type of the incentive pay. In the presence of a piece-...
Article
This paper develops a simple model of an international joint venture in which the ownership shares are endogenously determined as the outcome of Nash bargaining between a multinational firm and a host firm. It shows how tax/subsidy policy by the host country's government and transfer pricing of inputs by the multinational firm may influence the equ...
Article
The paper provides a quantitative assessment of the tariff endogeneity hypothesis in the macro context for the interwar and postwar U.S. economy. There is an almost unidirectional causality running from unemployment and trade deficit to the average tariff rate during the interwar period while more interactive relationships hold in the postwar perio...
Article
The paper formulates a theory of the firm to analyze the incidence of cyclical dumping in foreign markets in the forms of price discrimination as well as less than marginal cost. Cyclical dumping arises due to fluctuations in demand in home and foreign markets and the firm's inability to fully adjust its output to these fluctuations. The paper anal...
Article
Using an intertemporal model and incorporating wealth effects in consumption and leisure decisions, this paper reexamines the Laursen-Metzler question of the effect of terms of trade changes on employment and current account, with particular emphasis on employment. It does find support for the original Laursen-Metzler result that a (temporary) term...
Article
This paper presents an imperfectly competitive model of international trade, in which import competing domestic firms lobby for import protection and the foreign exporting firms lobby against such protection. The equilibrium levels of lobbying and the resulting trade policy are endogenously determined. It is shown, under alternative sets of assumpt...
Article
We examine trade restrictions such as quantity and quality limitations on imports in an oligopolistic industry consisting of foreign and domestic firms. We find that the effects of trade policy hinge on the location of the quality produced by the firms in the quality spectrum. A quota leads to positive protection while minimum quality standards lea...
Article
This paper examines the role of trade policies in influencing a foreign monopolist's decision on price, quantity and, in particular, the quality of its product. We show that a specific tariff leads to higher quality, whereas an ad-valorem tariff usually does the opposite. Quotas and specific tariffs are shown to be equivalent, and both dominate an...
Article
The report argues that aid volatility is an important source of volatility for the poorest countries. Following a method already applied by the Agence Française de Développement, the report argues that loans to LICs should incorporate a floating grace period, which the country could draw upon when hit by a shock. The definition of a shock should in...
Article
This paper examines optimal taxation of foreign capital by a host country when its movements are sluggish. It is shown that as long as the host country discounts future welfare it is optimal to tax foreign capital even when it is small enough to be unable to influence the reward to capital in the source country. This is because the initial gains fr...
Article
This paper examines a two-sector open economy with a monopoly in the export sector who has monopoly power in the domestic market, is a competitor in the international market and is able to discriminate between the two. We show that in the presence of such dumping, while income-distributional and resource-allocational aspects are basically the same...
Article
In this paper I examine the impact of cost and demand uncertainties in the host country on the behaviour of a multinational enterprise. Using a neoclassical framework it is shown that cost and demand uncertainties have opposite impacts on the scale of operation in the parent country and on the volume of intrafirm trade. It is also shown that under...
Article
The theory of international investment is integrated to the monetary approach to balance of payments. It is shown that in the short run when the level of international investment is given a devaluation may not improve the balance of payments even if the Marshall-Lerner condition is met. If the devaluing country is a net importer of capital, then th...
Article
Economic growth is introduced in the urban unemployment model of Harris and Todaro. It is shown that in the steady state, the optimal savings ratio is greater than the golden rule savings ratio under full employment. Also the optimal proportion of total investment allocated to the urban sector is not necessarily higher than the optimal proportion u...
Article
Confirms that if market structures are endogenous, the Hecksher-Ohlin predictions about factor prices and comparative advantage are preserved, but if market structures are exogenous, they themselves exert an influence on the comparative advantage, and in particular the degree of concentration in a sector and its degree of comparative advantage are...
Article
In this paper we present a simple model of unemployment in the presence of foreign investment in the traded sector. More foreign investment increases employment in the nontraded sector but may or may not increase employment in the traded sector. The effect on total employment is also ambiguous. In a two-country framework with foreign investment its...
Article
This paper contributes with empirical findings to European co-inventorship location and geographical coincidence of co-patenting networks. Based on EPO co-patenting information for the reference period 2000-2004, we analyze the spatial con figuration of 44 technology-specific co-inventorship networks. European co-inventorship (co-patenting) activit...
Article
Full-text available
It aims at explaining why/how the services sector may grow faster than manufacturing. It develops a two-sector, closed-economy model, having a manufacturing sector and a services sector. Accumulation of human capital serves as the basis of growth. The analysis focuses on business services, although household services are considered. It is argued th...
Article
This paper develops an endogenous growth model that captures the historical evo- lution of preferences, knowledge, technology and output. It develops a human capital- led growth model that generates endogenous transition between three rgimes that have characterized economic development. The economy evolves from an agricultural to traditional manufa...
Article
This paper differentiates between trade in commodities and trade in ser-vices, and examines the impact of such trades on growth of trading economies. Within the framework of the model, growth rate of an economy in the long run is unaffected by any change in trade regime. But it is affected during periods of transitions. Transitional dynamics arises...

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