http://repub.eur.nl/res/aut/14706/ List of Publications en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/12949/ 1997-01-01T00:00:00Z We unite the theories of factor abundance and monopolistic competition to explore the general equilibrium relations between trade in producer services, economies of scale and factor markets. In our model, two final goods are produced using capital, labor, and a variety of differentiated producer services that are produced under increasing returns to scale. We analyze the implications for comparative advantage and trade in goods between two countries that differ in factor endowments and in technology of service provision. Moreover, we use the concept of the integrated world equilibrium to investigate trade in goods and services, also when services require foreign direct investments. http://repub.eur.nl/res/pub/13069/ 1996-01-01T00:00:00Z The article analyzes a two-country general equilibrium model to examine the role played by services in the world economy. Services play an increasingly important role in the world economy, as observed, for instance, by the growing share in employment, production, exports and foreign direct investment. Firms increasingly delegate costly, knowledge intensive intermediate-stage processing activities in their production processes to specialized outside producers in order to gain cost advantages. Countries generally differ in the extent to which producers in final goods sectors have the opportunity to gain cost advantages by using knowledge intensive producer services. In the article, the authors concentrate on trade patterns between countries that are similar in all respects, except that one country lacks a producer services sector. The authors also develop a general equilibrium model in which a home country and a foreign country both produce a manufactured good and a basic commodity called food. http://repub.eur.nl/res/pub/12420/ 1993-01-01T00:00:00Z Non-parametric tolerance limits are employed to calculate soft margins such as advocated in Williamson's target zone proposal. In particular, the tradeoff between softness and zone width is quantified. This may be helpful in choosing appropriate margins. Furthermore, it offers policymakers a framework for reference in the case of changing exchange rate policy. The empirical applications include an evaluation of the EMS zone width. We also show that the procedures for calculating the soft margins are robust against alternative data-generating mechanisms.