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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/10012470921
intervention in order to influence the government's choice of subsidy. In the event commitment to free trade may be desirable even …
Persistent link: https://www.econbiz.de/10012472599
also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By … final and intermediate good firms can strengthen the argument for an export subsidy if intermediate good firms are domestic …. The domestic welfare implications of alternative rent-shifting policies (a production subsidy and an import tariff) at the …
Persistent link: https://www.econbiz.de/10012473404
international competition in the presence of divergent climate policy approaches may result in subsidy races, which come with their …
Persistent link: https://www.econbiz.de/10014322698
capital subsidies and shows the conditions under which a countervailing duty will offset the effect of the subsidy on exports … the amount of duty to the amount of the subsidy. This paper examines a generalized model of imperfect competition with …. Also, conditions are specified under which exports will increase despite the imposition of the maximum tariff under GATT …
Persistent link: https://www.econbiz.de/10012476547
to reduce the quality of its already high quality exports. Under Cournot competition, the results are reversed with a tax … in the low-quality country and a subsidy in the high-quality country …
Persistent link: https://www.econbiz.de/10012471239
In thinking about policy, academic economists alternate between theoretical models in which governments can design finely-tuned optimal interventions and practical considerations which usually assume the government to be incompetent and hostage to special interests. I argue in this paper that...
Persistent link: https://www.econbiz.de/10012474373
provide two examples to illustrate this point. In the context of a Cournot duopoly, we show that an implementation scheme in … which the U.S. firm receives a pre-announced subsidy if the market share target is met leads to increased aggregate output …
Persistent link: https://www.econbiz.de/10012472630
might lament any departure from broad carbon pricing, citing efficiency costs. This paper offers theory and numerical …
Persistent link: https://www.econbiz.de/10015072857
productive use, the economy wide marginal product of emissions falls with an increase in any subsidy, tending to decrease …
Persistent link: https://www.econbiz.de/10012463650