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The paper examines optimal strategic trade policy under a heterogeneous cost oligopoly. The first-best policy involves a structure of firm-specific export subsidies/taxes in which the government favours the most efficient firms only with a sufficiently low social cost of public funds. Copyright...
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Labor market reforms in the direction of “flexicurity” have been widely endorsed as a means to increase an economy's ability to adjust to negative shocks while offering adequate social safety nets. This paper empirically examines how such reforms influence employment's responsiveness to...
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