This paper derives the dependency of optimal tariff and inflation tax on tax collection and enforcement costs. The … analysis is done for a small, open economy. The existence of such costs can justify tariff and inflation tax policies as … inflation and tariffs as revenue devices. The analysis derives elasticity rules that tie optimal tariff and inflation rates to …

This paper analyses the response of firms to monthly CPI inflation releases using high-frequency data from a large … economy-wide business survey. CPI inflation perceptions respond very quickly, in a matter of hours after the release. We also … find that firms' expected own-price growth has a strong positive correlation with changes in CPI inflation, particularly …

profits from a new variety against the costs of "cannibalizing" their own sales. With identical costs across firms, opening … costs, the number of firms surviving in equilibrium is quite insensitive to the market size. When trade is opened, more …