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We analyse a stylized model of the world grain market characterized by a small oligopoly of traders with market power … on both the supply and demand side. Crops are stochastic and exporting countries can impose export tariffs to protect … domestic food prices. Our first results is that export tariffs are strategic complements and that for poor harvests equilibrium …
Persistent link: https://www.econbiz.de/10010221824
We analyse a stylized model of the world grain market characterized by a small oligopoly of traders with market power … on both the supply and demand side. Crops are stochastic and exporting countries can impose export tariffs to protect … domestic food prices. Our first results is that export tariffs are strategic complements and that for poor harvests equilibrium …
Persistent link: https://www.econbiz.de/10013059870
restrictions and export subsidies prevailing in LDCs. In this paper we focus on the import under-invoicing due to high tariff …
Persistent link: https://www.econbiz.de/10013142327
Welfare with the maximum-revenue tariff is compared to free-trade welfare under perfect competition in the case of a large country able to affect its terms of trade; under Cournot duopoly with differentiated products; and under Bertrand duopoly with differentiated products. Under perfect...
Persistent link: https://www.econbiz.de/10011886117
In this paper, a domestic and a foreign firm compete as Cournot duopolists in the domestic market. The foreign firm has incomplete information about the costs of the domestic firm, but the domestic government and the domestic firm are completely informed. It is shown that the domestic government...
Persistent link: https://www.econbiz.de/10014074121
restrictions and export subsidies prevailing in LDCs. In this paper we focus on the import under-invoicing due to high tariff … circumstances. -- Import tariff ; under-invoicing ; Cournot oligopoly …
Persistent link: https://www.econbiz.de/10003980007
Persistent link: https://www.econbiz.de/10011448643
Why are empirically observed tariffs so much lower than theoretically calculated Nash-equilibrium tariffs? We argue that this gap can be narrowed by using a dynamic model instead of a static model. This approach has two advantages. (i) It allows us to take account of the transitional process...
Persistent link: https://www.econbiz.de/10008989644
Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy are based on theoretical models that assume foreign manufacturers sell directly to consumers. However, recent empirical evidence suggests that wholesalers and retailers play an...
Persistent link: https://www.econbiz.de/10010338661
Trade liberalization can imply slow and long adjustment processes. Taking account of these adjustment processes can change the evaluation of trade policy, especially when policy makers care more about the next couple of years than the infinite future. In this paper I analyze the setting of...
Persistent link: https://www.econbiz.de/10011555189