Furusawa, Taiji; Higashida, Keisaku; Ishikawa, Jota - In: Canadian Journal of Economics 37 (2004) 2, pp. 445-458
We consider trade policies intended to affect the production of a foreign monopolist that generates negative externalities. We derive the optimal tariff and optimal import quota and examine which policy measure should be used to maximize domestic welfare. We find that if the domestic government...