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The practice of trade cost measurement faces several challenges related to data quality, methodology and theory; but the major issue is that of data scarcity. Due to these facts both domestic and asymmetric trade costs have been ignored despite being a feature of modern trade models. This paper...
Persistent link: https://www.econbiz.de/10012147217
We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....
Persistent link: https://www.econbiz.de/10011781965
governments exhibit greater concern for aggregate welfare than others. This government behavior may itself be endogenously … determinants of the differences in government behavior across countries …
Persistent link: https://www.econbiz.de/10014214344
This paper examines the political economy of trade policy in the context of a small open economy, when factor ownerships are variable. The median voter hypothesis is used. In the long run, both trade protection and distribution of wealth and income are endogenous, and the paper investigates how...
Persistent link: https://www.econbiz.de/10011577281
In a Bertrand duopoly model, it is shown that an anti-dumping regulation can be strategically exploited by the domestic firm to reduce the degree of competition in the domestic market. The domestic firm commits not to export to the foreign market which gives the foreign firm a monopoly in its...
Persistent link: https://www.econbiz.de/10003785300
Using a competitive two-country two-commodity monetary model with optimizing agents in which persistent unemployment arises, this paper examines the effects of trade restrictions on consumption and employment in the two countries. When facing unemployment, a country tends to impose an import...
Persistent link: https://www.econbiz.de/10003321174
-dependent costs are quadratic in qualities, but independent of the quantities produced. The domestic government may impose a minimum …, a sufficiently high minimum quality standard set by the domestic government will enable the domestic firm to induce exit …
Persistent link: https://www.econbiz.de/10003328534
We explore how outcomes of trade policy retaliation (Nash tariff games) are affected when trade simultaneously takes places geographically across countries and through time via financial intermediation. In such models deficits and surpluses in goods trade are endogenously determined, and...
Persistent link: https://www.econbiz.de/10003806727
This paper investigates the domestic government's antidumping duty choice in an asymmetric information framework where … the foreign firm's cost is observed by the domestic firm, but not by the government. To induce truthful revelation, the … government can design a tariff schedule, contingent on firms' cost reports, accompanied by a threat of auditing and implementing …
Persistent link: https://www.econbiz.de/10003807867
This paper examines the role of the burden of proof (BoP) in National Treatment (NT) disputes under trade agreements. In the situation under study, imports may cause environmental damage, in which case less favorable treatment of imported products may be globally desirable from an international...
Persistent link: https://www.econbiz.de/10003809130