Chen, Shih-shen; Hsu, Chu-Chuan; Huang, Chin-shu - In: International Review of Economics 60 (2013) 4, pp. 375-386
foreign firm on the government officer works, then the optimum tariff is negative, that is, import subsidy. However, this … subsidy will turn to a positive tariff rate with the increasing lobbying inducement from domestic firms. Secondly, zero tariff …’ marginal costs are different, the optimum policy is to levy an import tariff on the one whose marginal cost is relatively small …