Guldager, Jørgensen Jan; Schröder Philipp J. H. - In: The B.E. Journal of Economic Analysis & Policy 5 (2006) 1, pp. 1-17
This paper presents a two-country intra-industry trade model with bilateral ad valorem tariffs and fixed export costs that are heterogeneous across firms. In this model not all firms will choose to export. We examine the effects of reciprocal changes in the tariff and the fixed export barrier on...