Hwang, Hong; Miyagiwa, Kaz - In: Journal of Economic Integration 12 (1997), pp. 87-98
This note shows that in the Brander-Spencer model of export subsidy, if there is no cost of financing subsidies, either a specific export subsidy or an ad val - orem export subsidy can be used to achieve the same maximum welfare level. If, however, there is a binding budget constraint, a...