Campolmi, Alessia; Fadinger, Harald; Forlati, Chiara - Chaire de Finance Internationale, Collège du … - 2009
We study trade policy in a two-sector Krugman (1980) trade model, allowing for production, import and export subsidies/taxes. We consider non-cooperative and cooperative trade policy, first for each individual instrument and then for the situation where all instruments can be set simultaneously,...