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Subsidizing firm entry in open economies
Pflüger, Michael; Südekum, Jens - 2009
the government incentive to impact on entry costs, and how entry subsidies can be used strategically in open economies. We … the monopoly pricing distortion. In the autarky equilibrium these subsidies trigger entry, but they eventually do not lead … to more but to better firms in the market. In the open economy there is another, strategic motive for entry subsidies as …
Persistent link: https://www.econbiz.de/10003894876
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Corporate taxes and multi-product exporters : theory and evidence from trade dynamics
Flach, Lisandra; Irlacher, Michael; Unger, Florian - 2019
This paper analyzes how exporters are affected by corporate tax reforms in destination markets. We introduce tax policy in a trade model of multi-product firms and show that producers face tougher competition in export markets with lower corporate tax rates. This competitive effect induces firms...
Persistent link: https://www.econbiz.de/10012060880
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Corporate taxes and multi-product exporters : theory and evidence from trade dynamics
Flach, Lisandra; Irlacher, Michael; Unger, Florian - 2019
This paper analyzes how exporters are affected by corporate tax reforms in destination markets. We introduce tax policy in a trade model of multi-product firms and show that producers face tougher competition in export markets with lower corporate tax rates. This competitive effect induces firms...
Persistent link: https://www.econbiz.de/10012064599
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Icebergs versus tariffs : a quantitative perspective on the gains from trade ; conference paper
Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario - 2013
We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize the analysis of Arkolakis, Costinot and...
Persistent link: https://www.econbiz.de/10010344632
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Trade, Inequality, and the Size of the Welfare State
Kohl, Miriam - 2017
This paper investigates the effects of international trade in a general equilibrium model with heterogeneous firms where a welfare state redistributes income. We look at a very stylised progressive non-distortionary redistribution scheme. We show that for a given tax rate international trade...
Persistent link: https://www.econbiz.de/10011583435
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Unemployment in an interdependent world
Felbermayr, Gabriel; Larch, Mario; Lechthaler, Wolfgang - 2012
We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...
Persistent link: https://www.econbiz.de/10011452156
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International Trade and Firms' Heterogeneity Under Monopolistic Competition
Jean, Sébastien - 2001
This paper aims at shedding some light on the interactions between international trade and firms' heterogeneity, by proposing a tractable model consistent with the stylised facts unveiled by the recent empirical literature. The model describes, in a general equilibrium framework, two economies...
Persistent link: https://www.econbiz.de/10014139759
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Heterogeneous firms, trade, and economic policy : insights from a simple two-sector model
Pflüger, Michael; Russek, Stephan - 2011
that emerge when countries non-cooperatively choose entry subsidies and their levels of basic research. We also …
Persistent link: https://www.econbiz.de/10009519889
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International Outsourcing under Monopolistic Competition : Winners and Losers
Do, Viet Dung - 2007
We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the quot;trade creationquot; effect and the quot;exploitation...
Persistent link: https://www.econbiz.de/10012776626
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Cross-industry heterogeneity in export participation : the role of scale economies in R&D
Ferguson, Shon - 2012
This paper shows that the R&D intensity of an industry plays an important role in determining international trade patterns via its effect on scale economies. I first develop a model of trade with heterogeneous firms where firms compete with each other by spending on fixed product development...
Persistent link: https://www.econbiz.de/10009632205