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also implies that there may exist a positive bilateral tariff that maximizes national and world welfare. Applying one of … that are heterogeneous across firms, we find that the reciprocal reduction of small tariffs reduces welfare. …
Persistent link: https://www.econbiz.de/10004963707
(PTAs) and show that the indirect effects can give rise to trade diversion. We also characterize the welfare effects of … persistent finding is that, in the absence of appropriate regulation, preferential trade liberalization can be welfare …
Persistent link: https://www.econbiz.de/10012287796
national and world welfare. …
Persistent link: https://www.econbiz.de/10005260181
Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the notion that trade is motivated by consumer’s love of variety. In this paper, I augment these preferences by the determinants of demand for heterogeneous products. The model...
Persistent link: https://www.econbiz.de/10003882309
reinvestigate the process of market exit. -- firm heterogeneity ; monopolistic competition ; economic policies and welfare …
Persistent link: https://www.econbiz.de/10009519889
tariff is welfare improving [Gros (1987) and Helpman and Krugman (1989, ch. 7)]. This note introduces a consumption …-leisure trade-off to endogenize labor supply resulting in ambiguous welfare effects of small ad-valorem tariff protection … the number of producers, i.e. the international division of labor. A small tariff is welfare reducing when the terms of …
Persistent link: https://www.econbiz.de/10014121348
The paper explores theoretically and empirically why trade intermediaries (TIs) are frequently used as agents for exports to some countries but not to others. We adapt a standard intra-industry trade model with variable export costs (e.g. transport) and fixed export costs (e.g. market access) to...
Persistent link: https://www.econbiz.de/10011437889
with heterogeneous firms subject to high and low tariffs. We examine the welfare effects of applying three different tariff …
Persistent link: https://www.econbiz.de/10005062606
Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the notion that trade is motivated by consumer's love of variety. In this paper, I augment these preferences by the determinants of demand for heterogeneous products. The model...
Persistent link: https://www.econbiz.de/10011430069
This paper starts by showing that in the European car industry, there exist cross-country taste differences along the product attribute dimension that significantly drive net trade patterns and reduce the volume of trade. Further it is shown that, after the creation of the European common...
Persistent link: https://www.econbiz.de/10011430098