Trade Policy and Import Competition under Fluctuating Prices
When subsidies and tariffs are applied to imports with fluctuating prices, it is shown that the output response of domestic producers depends on market structure and their attitude toward risk. The domestic industry response is contrasted under two types of market structure, a monopoly and a competitive industry. Some unanticipated results suggest caution in the implementation of trade policy.
|Date of creation:||Feb 1981|
|Date of revision:|
|Publication status:||published as Donnenfeld, Shabtai & Strebel, Paul, 1983. "Industry structure and trade policy under fluctuating import prices," European Economic Review, Elsevier, vol. 23(2), pages 203-215.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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- Fishelson, Gideon & Hillman, Arye L., 1979. "Domestic monopoly and redundant tariff protection," Journal of International Economics, Elsevier, vol. 9(1), pages 47-55, February.
- Helpman, Elhanan & Razin, Assaf, 1980. "Efficient Protection under Uncertainty," American Economic Review, American Economic Association, vol. 70(4), pages 716-31, September.
- Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
- Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
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