Böhringer, Christoph; Welsch, Heinz; Löschel, Andreas - 2001
economies of scale rise or fall in a particular industry depends on induced changes in the price elasticity of demand. Because … export demand is more price elastic than domestic demand, the overall price elasticity rises (falls) as the industry gains … (loses) in comparative advantage. We use a computable general equilibrium model for Germany to examine the effects of a …