We analyze non-cooperative commodity taxation in a two-country trade model characterized by monopolistic competition and international firm and capital mobility. In this setting, taxes in one country affect foreign welfare through the relocation of mobile firms and through changes in the rents...

This paper shows that subsidy competition may be efficiency enhancing. We model a subsidy game among two asymmetric regions in a new trade model, where capital can freely move among regions, but capital rewards are repatriated. We study subsidy competition, starting from an equilibrium where the...

We evaluate the incentives for strategic commodity tax-setting under destination and origin regimes when competition is imperfect and commodity taxes must be used to finance the government budget. Different cases of international duopoly are compared, where firms compete over quantities or...

Models of the new economic geography share a number of common conclusions, but also exhibit notable differences, in particular with respect to the shape of the location pattern and the efficiency of the market equilibrium. This reflects the fact that these models rely heavily on specific...

In den letzten Monaten stand das deutsche »Exportmodell« in der Kritik. Die deutschen Überschüsse seien mitverantwortlich für die Defizite der Nachbarländer und schaden den Handelspartnern. Ist diese Einschätzung gerechtfertigt? Für Gabriel Felbermayr, Universität Hohenheim, entbehren...

This paper explores the role of country asymmetries for trade and industrial policies with heterogeneous firms. Our analysis delivers a number of novel results. First, trade policies, infrastructure policies and industrial policies which improve the business conditions in one country have...

Informal long-term relationships and mutual confidence play a crucial role in modern economies in at least two dimensions. First, the performance of firms is strongly affected by their capacity to solve organizational questions effectively and this capacity is apparently strongly related to...

Die deutsche Volkswirtschaft gibt Rätsel auf: Einerseits ist Deutschland Export-(Vize-)Weltmeister, andererseits leidet es unter einer anhaltenden Wachstums- und Beschäftigungsschwäche. Ist das Exportwachstum Ausdruck ungebrochener internationaler Wettbewerbsfähigkeit und die Wachstums- und...