Keuschnigg, Christian (contributor) - 2006
alternative means to serve foreign markets (see Melitz, 2003, Grossman, Helpman and
Szeidl, 2006, Helpman, 2006, Helpman, Melitz … as in (2.10), αp
I
= r. The profitdefinition thus yields π
I
=
(1−α)p
I
k
I
=(1−α)A
f
(α/r)
ε−1
. The export versus FDI … ≡ du/u. The exceptions are changes in tax rates which are expressed
relative to net of tax prices, e.g.
ˆ
t
m
≡ dt
m
/(1−t …