The paper explores appropriate trade restrictions for least developed countries facing external terms-of-trade disturbances in terms of minimizing variations in the real sphere of the economy. Two alternative models are explored: export-subsidy versus import-tariff endogeneity. The theoretical...

This paper studies the aggregate substitution and expansion effects triggered by changes in input prices, in a context where firms supply a homogenous commodity and compete in quantities à la Cournot. We derive a sufficient condition for the existence of a Cournot equilibrium and show that this...