e c o n o m i c r e p o r t o f t h e p r e s i d e n t • f e b r u a r y 2 0 1 0 transmitted to the congress february 2010 together with the annual report of the council of economic advisers economic report of the president coverPROOF.indd 1 12/28/09 10:48 AM For sale by...

This paper argues that export subsidies aimed at shifting rents from foreign to domestic producers of a final good may also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By contrast, assuming Cournot competition for both the final...

This paper examines the strategic trade policy incentives for investment policies towards quality improvements in a vertically differentiated exporting industry. Firms first compete in qualities and then export to a third country market based on Bertrand or Cournot competition. Optimal policies...