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, unlike other import tariffs, AD duties are not absorbed by exporters. The results on firms' average markups also suggest that …
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We develop a simple two-region, cobweb-type dynamic equilibrium model to demonstrate the existence of optimal trade barriers. A pure comparative statics analysis of our model suggests that a reduction of trade barriers always enhances welfare. However, taking a dynamic perspective reveals that...
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raising revenue via taxation may make export subsidies less desirable and import tariffs more desirable. The model is then …-oriented industries to attract more assistance than import-competing industries. In reality, however, trade policy is heavily biased … toward supporting import industries. This paper shows within a standard protection for sale framework, how the costliness of …
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