Arbeitspapier
Regulatory entry barriers, rent-shifting and the home market effect
I modify a standard model of the home market to introduce entry barriers that create local rents. The existence of rents has relevant implications. First, the home market effect magnifies. Second, when countries are sufficiently unequal in size and rents are sufficiently large, a trade costs reduction reduces the small country's welfare. Third, entry barriers increase the large country's market size and may surprisingly increase its welfare. Fourth, a unilateral increase in import tariffs shifts foreign rents to the home country. This rent shifting effect intensifies the standard production relocation motive for trade policy intervention.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Papers ; No. 2016-15
- Classification
-
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade Policy; International Trade Organizations
- Subject
-
Rent Shifting
Home Market Effect
Production Relocation Effect
- Event
-
Geistige Schöpfung
- (who)
-
Tobal, Martín
- Event
-
Veröffentlichung
- (who)
-
Banco de México
- (where)
-
Ciudad de México
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Tobal, Martín
- Banco de México
Time of origin
- 2016
Other Objects (12)
On a new class of barrier options
Trade liberalization, consumption shifting and pollution: Evidence from Mexico's used vehicle imports
Labor heterogeneity and the pattern of trade
Decisiones financieras, competencia en el mercado y desempeño de las empresas: Evidencia emprica para Iberoamerica
Price-setting in Mexico and the real effects of monetary shocks
The role of credit on the evolution of wealth inequality in the USA
Forecasting short-run inflation volatility using futures prices: An empirical analysis from a value at risk perspective
Measuring the cost of U.S. housing policy
Around-the-clock USD/MXN volatility: Macroeconomic announcement spillovers and FX market intervention mechanisms
Consumption of durable goods under ambiguity
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Macroeconomic news, announcements, and stock market jump intensity dynamics
On a new class of barrier options
Trade liberalization, consumption shifting and pollution: Evidence from Mexico's used vehicle imports
Labor heterogeneity and the pattern of trade
Decisiones financieras, competencia en el mercado y desempeño de las empresas: Evidencia emprica para Iberoamerica
Price-setting in Mexico and the real effects of monetary shocks
The role of credit on the evolution of wealth inequality in the USA
Forecasting short-run inflation volatility using futures prices: An empirical analysis from a value at risk perspective
Measuring the cost of U.S. housing policy
Around-the-clock USD/MXN volatility: Macroeconomic announcement spillovers and FX market intervention mechanisms
Consumption of durable goods under ambiguity
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Macroeconomic news, announcements, and stock market jump intensity dynamics
On a new class of barrier options
Trade liberalization, consumption shifting and pollution: Evidence from Mexico's used vehicle imports
Labor heterogeneity and the pattern of trade
Decisiones financieras, competencia en el mercado y desempeño de las empresas: Evidencia emprica para Iberoamerica
Price-setting in Mexico and the real effects of monetary shocks
The role of credit on the evolution of wealth inequality in the USA
Forecasting short-run inflation volatility using futures prices: An empirical analysis from a value at risk perspective
Measuring the cost of U.S. housing policy
Around-the-clock USD/MXN volatility: Macroeconomic announcement spillovers and FX market intervention mechanisms
Consumption of durable goods under ambiguity
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule