We use a dynamic monopolistic competition model to show that an economy that inherits a small range of specialized inputs can be trapped into a lower stage of development. The limited availability of specialized inputs forces the final goods producers to use a labor intensive technology, which in turn implies a small inducement to introduce new intermediate inputs. The start-up costs, which mak...

(a)Verify its properties: Clearly, for “small” P2 only good 1 is produced, for “large” P2 only good 2 is produced, whereas in the intermediate domain both goods are produced. In the two domains of specialization, G is linear (and hence convex and homogeneous of degree one) in price; similarly, in the intermediate domain (where both goods are produced) G is convex and homogeneous of degree one i...

Goods producers in Canada rely on transportation networks to move raw materials and intermediate goods among production sites and finished goods to domestic and international markets. Firms in the retail, tourism and other service sectors also depend on transportation networks to assemble supplies and goods for sale and to bring customers to their facilities. Events that disable parts of the tr...

trade relationships built through production chains appear to be lasting due to relation-specific nature of the transactions, compared with the usual transactions of goods sold on the open market. this paper aims to verify such stability of international production networks at the global level, with special emphasis on intra-east asian trade. a series of survival analyses provide an evidence su...

This paper analyzes the effect of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general-equilibrium framework, assuming monopolistic competition in intermediate goods markets. It shows that the interplay of heterogeneous skills and comparatively homogeneous land demand triggers skill segmentation and agglomeration. The cor...

In this paper, I address the case of a corporate society in Central Mexico. After volcanic eruptions triggered population displacements in the southern Basin of Mexico during the first and fourth centuries A.D., Teotihuacan became a multiethnic settlement. Groups from different backgrounds settled primarily on the periphery of the metropolis; nevertheless, around the core, intermediate elites a...

The discussion about inputs for state power clearly underscores the fact that few—if any—such elements exist in raw " natural " form. Rather, these inputs are actually " intermediate goods, " that is to say, resources created by prior societal or state actions with an eye to being incorporated in the production of still other " final goods. " While the nature of the final goods is invariant in ...