We present a model of Cournot rivalry where domestic and foreign firms compete in a third-country market, and where the domestic export subsidy is determined by lobbying. Greater domestic cost heterogeneity (a mean-preserving spread of the marginal costs of the domestic firms) means that the...

Many economists expend a lot of energy decrying trade protectionism; nonetheless, their estimates of the actual burden that protectionism imposes on the economy have been surprisingly small. In this article, Howard J. Wall presents a method that captures some of the effects and distortions of...