We develop a small open-economy trade model where either a tariff, or a quota, or a voluntary export restraint (VER) exists, and where one exported, one imported, one non-traded, and one public good are produced. Within this context we examine the effects of fiscal expansion on welfare and the...

We develop a two-country model of foreign aid and cross-border pollution resulting from production activities in the recipient country. There is both private and public abatement of pollution, the latter being financed through emissions tax revenue and foreign aid. We characterize a Nash...

This paper develops a two-good, small-country, general-equilibrium model with trade restrictions (i.e., a tariff, an import quota, or a voluntary export restraint (VER)), international capital mobility, and taxes on the rate of return to capital. Within this context it examines the price and...