Industry Structure and Optimal Discriminatory Commercial Policies
AbstractThis paper studies the optimal production subsidies for domestic firms that compete in an export market against each other as well as against foreign rivals. Assuming that all firms do not have identical cost curves, it shows that the optimal policy for the home government is to give the more efficient domestic firms higher rates of subsidy, and that it may be optimal to tax the less efficient domestic firms. Then it considers the optimal discriminatory tariffs on homogeneous goods that are imported from different countries.
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Bibliographic InfoPaper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 96a38.
Length: 17 pages
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.
Web page: http://www.greqam.fr/
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COMMERCIAL POLICY; SUBSIDIES; TARIFFS; MARKET STRUCTURE; OLIGOPOLIES;
Find related papers by JEL classification:
- J7 - Labor and Demographic Economics - - Labor Discrimination
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Winston Chang & Hajime Sugeta, 2005. "Cost asymmetry, oligopolistic competition and optimal trade and industrial policies," International Economic Journal, Taylor & Francis Journals, vol. 19(1), pages 95-114.
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