The paper analyzes a model of strategic trade policies in the presence of international cross-ownership of firms that are heterogenous both in terms of costs and in terms of extent of foreign ownership. The equilibrium pattern of taxes and subsidies is characterized for any arbitrary...

This paper offers an explanation of the fact that some foreign firms are favored at the expense of others, and characterizes the distribution of favors in terms of the cost parameters of firms. We present a model where favors must be bought: they come from competing contributions. This model is...

A partial two country equilibrium model is built in which two different exogenous random shocks may occur. The governments simultaneously choose tariff functions relating their specific tariff to the level of an observable variable (volume of trade or international price). In the case of a...

We develop a new framework for the analysis of the impact of trade liberalization on the wage structure and on welfare. Our model focuses on the decision of workers to accumulate firm-specific skills, by "on-the-job" training, knowing that this means their future wages will have to be...

This paper analyses the effects of an environmental fiscal reform where the environmental tax revenue is used to reduce the tax burden on labor in order to increase employment. The study tries to assess the benefits generated by this type of reform in an integrated Europe where different degrees...