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The answer to the question in the title is yes for the case of ad-valorem taxes, a foreign industry that produces a vertically differentiated good of higher quality, and costs that take the form of qualitydependent fixed costs for both the foreign and domestic firm. The domestic industry loses...
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Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the … notion that trade is motivated by consumer’s love of variety. In this paper, I augment these preferences by the determinants … heterogeneous tastes for attributes. Allowing for international trade, the model predicts a within-industry home market effect, i …
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