Horst Raff

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This paper investigates the implications for international markets of the existence of retailers/wholesalers with market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in(More)
Why do governments employ inefficient policies when more efficient ones are available for the same purpose? We address this puzzle in the context of redistribution towards special interest groups (SIGs) by focusing on a set of important policies: tariffs and non-tariff barriers (NTBs). In our policy choice model a government can gain by committing to(More)
We construct a model of trade with heterogeneous retailers to examine the effects of trade liberalization on retail market structure, imports and social welfare. We are especially interested in studying the degree of pass-through of import into retail prices and the effects of retail market regulation. The paper shows that the degree of pass-through may be(More)
Based on the observation that industries are often geographically concentrated, this paper proposes a new political economy model of trade protection. We associate the sectors of a specific factors model with electoral districts populated by continua of heterogeneous voters who differ in their relative factor endowments. We show how strategic delegation(More)
This paper studies why multinational firms often share ownership of a foreign affiliate with a local partner even in the absence of government restrictions on ownership. We show that shared ownership may arise, if (i) the partner owns assets that are potentially important for the investment project, and (ii) the value of these assets is private information.(More)
The New Trade Theory predicts that international trade lowers prices for consumers and expands the choices available to them. This study shows that both predictions may no longer hold once adjustments in retailing are taken into account. I present a new model of retailing in general equilibrium and establish a trade-off between the number of products(More)
  • Markus Kelle, Jörn Kleinert, Horst Raff, Farid Toubal
  • 2012
We merge German balance-of-payments and foreign-affiliate-trade statistics to obtain data about trade in commercial services at the firm level. We use these data to study export market participation and the choice of export mode: cross-border versus foreign affiliate sales. We find that for firms in our sample productivity is both a statistically(More)
Recent theoretical work suggests that firm heterogeneity has an impact on the international investment decisions of multinational firms. This paper provides evidence foreign direct investment (FDI) at different levels of aggregation. We use a novel firm-level dataset on the FDI stocks of German firms to assess level and role of heterogeneity. Our data cover(More)