Unilateral trade liberalization in the melitz model: A note

In the two-country Melitz (2003) model, unilateral trade liberalization is often cast as a reduction of iceberg transportation costs and wages are determined by a linear outside sector, We show that welfare results reverse when wages adjust and trade frictions are revenue-generating tariffs.

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Year of publication:	2012
Authors:	Felbermayr, Gabriel ; Jung, Benjamin
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München

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Series:	Munich Reprints in Economics.
Type of publication:	Book / Working Paper
Notes:	Published in Economics Bulletin 2 32(2012): pp. 1724-1730
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010897501