Strategic Trade Policy with Heterogeneous Costs

Dermot Leahy and Catia Montagna

Bulletin of Economic Research, 2001, vol. 53, issue 3, 177-82

Abstract: The paper examines optimal strategic trade policy under a heterogeneous cost oligopoly. The first-best policy involves a structure of firm-specific export subsidies/taxes in which the government favours the most efficient firms only with a sufficiently low social cost of public funds. Copyright 2001 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 2001
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