Yasuhiro Takarada

Nanzan University · Department of Economics

In this paper we present a model of tied aid to shed light on the dispute between Kemp and Kojima (1985) and Schweinberger (1990) and to complement their analyses. We show that if the households of the recipient country are not informed of the transfers at their consumption decision, they have an incentive to trade the purchased goods from their do...

We examine the welfare effects of a transfer of pollution abatement technology in a two-country model. In each country, one industry discharges pollution as a byproduct of output, and the sum of domestic and cross-border pollution decreases the productivity of the other industry. We show the effects of technology transfer on the terms of trade, pol...

This paper examines the effects of international trade and trade policy in a two-country, two-good model with an open-access renewable resource that is internationally shared. We show that both countries may still benefit from trade when they specialize in the production of their comparative advantage good, although the shared resource is reduced b...

We develop a simple model of policy coordination on domestic standards and examine whether domestic standards policy can lead to regional and multilateral harmonization of standards under the principle of national treatment. This paper focuses on mandatory product and process standards affecting the characteristics of a final good that control nega...

Countries are increasingly using free trade agreements (FTAs) and customs unions (CUs) to cooperate on environmental issues by including environmental provisions in regional trade agreements (RTAs). We examine whether countries form RTAs with regional environmental regulations and join a multilateral trade agreement (MTA) with a common environmenta...

There is growing concern about trade-related environmental issues associated with increasing globalization. However, pollution emissions from international shipping and aviation, which are an essential pillar of international trade, tend to be overlooked. This paper examines environmental regulations of international transport in a two-country gene...

This study examines how free trade agreements (FTAs) and customs unions (CUs) affect multilateral trade agreements when countries endogenously determine the standards as well as tariffs. Raising standards reduces the negative consumption externalities of a traded good but increases firms' costs. We find that a deep FTA with the harmonization of sta...

Trade negotiations have started to pay attention to liberalization in environmental goods (EGs), whose production may require dirty intermediate goods. We construct a two-country trade model to explore the effects of trade liberalization in EGs on the local pollution, the global environment and welfare in the presence of such an environmental conun...

Article on Trade and the Environment

To control greenhouse gas emissions efficiently, we should regulate all pollution emission sources in the economy equally. However, in the real world, environmental regulations differ by sector. Using a small open economy model, this paper examines how the enforcement of an economy-wide emissions trading system (ETS) (i.e., uniform environmental re...

Using a general equilibrium model of international trade, we examine the effects of trade and strategic interaction in resource management between two countries that share renewable resources such as fishery stocks. Although output controls, which directly restrict the amount of harvest, are considered as efficient measures for resource management,...

This study examines the regional and multilateral harmonization of product standards by using a three-country trade model to reveal how regionalism regarding domestic regulations, such as standards, affects multilateralism under national treatment. Raising standards reduces negative consumption externalities but increases firms' costs. The main fin...

Greenhouse gas emissions from international transport are increasing significantly because of the shifting of trade from proximate partners to distant partners under trade liberalization. We examine environmental regulations of international transport in a two-country, two-good general equilibrium model where international transport generates pollu...

This study examines the effects of free trade agreements (FTAs) on the welfare of both member and nonmember countries and the incentives for multilateral free trade in a three-country model of Bertrand and Cournot competition in differentiated oligopolies. First, we demonstrate that an FTA increases the welfare of all member and nonmember countries...

This paper examines whether or not the number of fishers is optimal under an Individual Transferable Quotas (ITQ) program. We consider two cases on the structure of the quota market: (1) cases in which all fishers are price takers, and (2) cases in which large-scale fishers have market power. When all fishers are price takers in the quota market, t...

Using a simple two-period model, this paper examines the effects of the acquisition of mines/resources by a final goods producer located in a resource-importing country on resource prices in both the first (the present) and second (the future) periods, profits of firms, and welfare. We find that an increase in the mines owned by a final goods produ...

This paper theoretically examines whether an individual transferable quotas (ITQs) regime can achieve the long-run efficiency through the reduction of vessel numbers. Assuming the existence of two types of vessels in terms of their scales, we consider not only quota transactions but also the exit of fishers. Changes in vessel sizes of incumbent fis...

We examine trade and strategic interaction between countries that enforce technical measures for resource management which restricts capacity of exploitation to protect an internationally shared renewable resource. The technical measures are common management tools in fisheries (e.g., restrictions on gears, vessels, areas and time). We show that un...

We develop a two-country, two-good model with a transboundary renewable resource. The transboundary renewable resource is an open-access resource that is shared by two countries. We characterize the autarkic steady state, and then examine the patterns of trade and the post-trading steady-state utility levels. Although the resource stock is reduced...

In this paper, we examine which mergers are profitable in the generalized hierarchical Stackelberg model. Extending the analysis of the existing literature, we show the general conditions in which mergers can generate profit. We also examine what form of mergers can generate higher profits. Further, we analyze the effect of mergers on social welfar...

In this paper, we examine the share rule for profitable mergers in the standard Cournot and Stackelberg models. We show that mergers are unprofitable unless they involve at least 80% of the firms with the same output choice timing in the industry.

This paper examines the welfare effects of aid tied to technology transfer in a two-country general equilibrium model. In the recipient country, some factors of production employed in a particular industry are difficult to use in other industries because their properties are specific to that industry. Technology transfer facilitates 'factor movemen...

We examine gains from trade in a small open economy model with the inter-industry interaction caused by pollution. In our model, the economy is diversified in the trading equilibrium so that it cannot avoid the negative impact of pollution through the spatial separation of production. First, we show that free trade may harm the economy depending on...

The purpose of this paper is to examine the welfare effects of international income trans-fers in a two-country two-good model with transboundary pollution. In each country, one industry emits pollution as a joint product of output and the sum of domestic and cross-border pollution negatively affects productivity of the other industry. Then, we sho...

Using a two-country two-good model, we examine the welfare effects of foreign aid that facilitates factor movement between industries in the recipient country. The government of the donor country produces a public input, which the recipient’s government is forced to purchase by spending aid as well as tariff revenue. The recipient uses the public i...

The antitrust regulator often imposes a merger remedy on a horizontally merged firm in order to remove the anti-competitive effect of the merger. From the economic viewpoint, a merger remedy is a kind of regulatory constraint. This paper analyzes how various kinds of regulatory constraints affect the merged firm’s profit in the linear demand model....