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Strategic Trade Policy with Endogenous Choice of Quality and Asymmetric Costs
Zhou, Dongsheng; Spencer, Barbara J.; Vertinsky, Ilan - 2021
This paper examines the strategic trade policy incentives for investment policies towards quality improvements in a vertically differentiated exporting industry. Firms first compete in qualities and then export to a third country market based on Bertrand or Cournot competition. Optimal policies...
Persistent link: https://www.econbiz.de/10013248680
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Free Trade vs. Strategic Trade : A Peek into Pandora'S Box
Grossman, Gene M.; Maggi, Giovanni - 2021
We investigate whether a welfare-maximizing government ought to pursue a program of" strategic trade intervention or instead commit itself to free trade when domestic firms will have an opportunity to manipulate the government's choice of the level of" intervention. Domestic firms may overinvest...
Persistent link: https://www.econbiz.de/10013222625
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Do Labor Rents Justify Strategic Trade and Industrial Policy?
Dickens, William T. - 2021
Several efficiency wage theories of wage determination have the property that identical workers are more productive in high wage industries and that the promotion of employment in high wage industries can increase GDP (and some measures of welfare). I argue that while policies to favor high wage...
Persistent link: https://www.econbiz.de/10013219303
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Strategic Trade Policy When Domestic Firms Compete Against Vertically Integrated Rivals
Rodrik, Dani; Yoon, Chang-Ho - 2021
This paper models the international competition between a domestic firm and its vertically integrated foreign rival. The domestic firm has the choice of developing its own production capability for an intermediate input, or of importing it from the foreign firm at a price set by the latter. In...
Persistent link: https://www.econbiz.de/10013222922
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Rent-Shifting Export Subsidies with an Imported Intermediate Product
Ishikawa, Jota; Spencer, Barbara J. - 2021
This paper argues that export subsidies aimed at shifting rents from foreign to domestic producers of a final good may also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By contrast, assuming Cournot competition for both the final...
Persistent link: https://www.econbiz.de/10013225571
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International R&D Rivalry and Industrial Strategy
Spencer, Barbara J.; Brander, James A. - 2021
This paper presents a theory of government intervention which provides an explanation for "industrial strategy …
Persistent link: https://www.econbiz.de/10013235305
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Strategic Trade Policy with Incompletely Informed Policymakers
Brainard, S. Lael; Martimort, David - 2021
Ever since the inception of research on strategic trade policy, economists have warned that the informational requirements are high, and unlikely to be met in practice. This paper investigates the implications of incomplete information for a simple, rent-shifting trade policy of the type...
Persistent link: https://www.econbiz.de/10013247181
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Strategic Trade Policy
Brander, James A. - 2021
This paper reviews the literature on strategic trade policy. Strategic trade policy is defined as trade policy that conditions or alters a strategic relationship between firms, implying that strategic trade policy focuses primarily on trade policy in the presence of oligopoly. The key point is...
Persistent link: https://www.econbiz.de/10013212354
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Strategic Trade, Competitive Industries and Agricultural Trade Disputes
Bagwell, Kyle; Staiger, Robert W. - 2021
The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these … predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the … theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from …
Persistent link: https://www.econbiz.de/10013227741
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Procurement Contracting with Time Incentives : Theory and Evidence
Bajari, Patrick - 2010
In public sector procurement, social welfare often depends on the time taken to complete the contract. A leading example is highway construction, where slow completion times inflict a negative externality on commuters. Recently, highway departments have introduced innovative contracting methods...
Persistent link: https://www.econbiz.de/10012757589