Ramírez, Rafael S. Espinosa; Kayalica, M. Ozgur - In: Economía Mexicana NUEVA ÉPOCA XVI (2007) 1, pp. 47-74
A Cournot oligopolistic setting model of trade is characterized by local and foreign firms competing in the presence of pollution quota and tax. Local firms are foreign-owned (FDI) and repatriate their profits. First, we analyze the impact on welfare given by the merger of the local firms, as a...