Mizuno, Tomomichi; Takauchi, Kazuhiro - Volkswirtschaftliche Fakultät, … - 2013
To consider the role of uncertain production cost resulting from complying with rules of origin (ROO), we formulate a … if they comply, they enjoy zero tariff but suffer an uncertain production cost. Because compliers must source a certain … equilibrium of compliers and non-compliers. We show that if the variance of the uncertain production cost is small, the rate of …