international division of labour. We concentrate on the question, to what extent they have caught up with the productivity level of … their Western counterparts of similar size and sector and how this productivity difference is related to changes in their … policy and productivity information for individual manufacturers from both parts of the country. Using a decomposition …

This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the …

also implies that there may exist a positive bilateral tariff that maximizes national and world welfare. Applying one of … that are heterogeneous across firms, we find that the reciprocal reduction of small tariffs reduces welfare. …

. Our main result is that network effects create a fundamental conflict between the maximization of social welfare and … welfare is highest in the asymmetric equilibrium. We also show that both consumer surplus and social welfare are higher in any …

outperform unit taxes in terms of welfare for a wide range of imperfect competition settings, including Dixit … industry, less output per firm, less tax revenue, but higher welfare compared to ad valorem taxes. …

setting the two policy instruments have different welfare effects. For a strong green policy (a severe reduction of the dirty …

probability of expecting economic recovery. The effect of conflict on general welfare however is less robust. …

with the welfare-maximum benchmark and cases of Transco with cost-plus regulation and no regulation. In all tested cases …, the proposed approach results in welfare-maximum outcomes while the other regulatory approaches fail to produce welfare …