A note on comparative statics for a labor-managed firm engaged in exporting

TitleA note on comparative statics for a labor-managed firm engaged in exporting
Publication TypeJournal Article
AuthorsBaniak, A.
Journal titleJournal of Comparative Economics
Year2000
Pages619 - 625
Volume28
Issue3
Abstract

The behavior of a labor-managed firm (LMF) producing both for the domestic market and for export is analyzed assuming that it competes with a foreign profit-maximizing firm (PMF) in the export market. Conventional wisdom suggests that a LMF facing an increase of demand in the foreign market will cut sales in this market. We show that, with high enough sales in the domestic market, the LMF will sell less at home and more abroad after an introduction of an export subsidy. We also show that, under the same condition, the LMF will increase foreign sales after a devaluation of the domestic currency. Thus, the LMF reacts in a manner similar to that of a PMF.

Languageeng
Notes

Sep; A note on comparative statics for a labor-managed firm engaged in exporting

Publisher linkhttp://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6WHV-45FC5SY-V&_user=7105836&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000071140&_version=1&_urlVersion=0&_userid=7105836&md5=a274d73bdd4c42e57d40dc849fc5da36
Unit: 
Department of Economics and Business