IT Services in a General Equilibrium Macro-Model
In this chapter, the relationship between trade in IT services and organizational forms in an international context is explored. The presented model is a General Equilibrium model with two countries, three sectors, and two organizational forms which is based on a model from Antras (2003). It allows linking of the factor endowments of a country with the architecture of the IT system and trade of IT services and uses the IT Administration Rights approach which is introduced in Sect. 3.4. The model emphasizes the accompanying character of IT services and shows that IT services are traded in both directions even when there are no differences in factor intensities or technology.
KeywordsGeneral Equilibrium Good Producer Service Company Factor Endowment Incomplete Contract
Unable to display preview. Download preview PDF.