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This paper derives a new effect of trade liberalisation on the quality of the environment. We show that in the presence of heterogeneous firms the aggregate volume of emissions is influenced not only by the long-established scale effect, but also by a reallocation effect resulting from an...
Persistent link: https://www.econbiz.de/10010896177
This paper sets up a two country monopolistic competition model with intra-industry trade to study the effects of an exogenous differential in wage and social policies on the location of industry. Two model scenarios are considered. In the traditional one with physical capital, such a...
Persistent link: https://www.econbiz.de/10004963612
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This note shows, however, that this added realism also implies that there may exist a positive...
Persistent link: https://www.econbiz.de/10004963707
The paper explores theoretically and empirically why trade intermediaries (TIs) are frequently used as agents for exports to some countries but not to others. We adapt a standard intra-industry trade model with variable export costs (e.g. transport) and fixed export costs (e.g. market access) to...
Persistent link: https://www.econbiz.de/10005068676
The ad valorem versus unit taxes debate has traditionally emphasized tax yield. For this criterion, ad valorem taxes outperform unit taxes in terms of welfare for a wide range of imperfect competition settings, including Dixit-Stiglitz monopolistic competition. Yet, in a number of policy fields,...
Persistent link: https://www.econbiz.de/10005068803
Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets the green sector may be subsidised or the dirty sector be taxed. This paper shows that in a monopolistic competition setting the two policy instruments have different...
Persistent link: https://www.econbiz.de/10005069021
market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than …, i.e. innovation. It is found that: (i) moving from monopoly to duopoly does increase the technology level set by firms … in the software industry; (ii) a duopoly adjusts more readily to global technological progress than a monopolist …
Persistent link: https://www.econbiz.de/10004963814