Exbrayat, Nelly; Madiès, Thierry; Riou, Stéphane - Groupe d'Analyse et de Théorie Économique Lyon … - 2013
This paper explores how trade integration influences the decision by national governments to bailout manufacturing firms. We develop a 2-country model of generalized oligopoly with heterogenous firms and trade costs. High-cost firms are eligible for a bailout while low-cost firms are profitable....