This paper considers the optimum taxes and tariffs in a multi-commodity setting. Using the argument in Ramawami (1968), I show that when all goods and factors are tradable, the home country should buy out all the foreign factors. Conditions for the optimal terms of trade are also analyzed. In a...

We give a simple, constructive proof that the lens condition implies the factor-price equalization condition, when there are only two factors. Taking stock of the sufficient conditions under which the lens condition implies the FPE condition, we have the conditions of two factors or two goods or...

This paper examines the optimal industrial policy for an industry with a vertical market structure. A home firm and a foreign firm both import an intermediate good from a third country to produce a final good. How the home country government sets the optimal industrial policy has to take account...