Arbeitspapier
Tariffs and Firm-Level Heterogeneous Fixed Export Costs
Recent literature on the workhorse model of intra-industry trade has explored heterogeneous cost structures at the firm level. These approaches have proven to add realism and predictive power. This note shows, however, that this added realism also implies that there may exist a positive bilateral tariff that maximizes national and world welfare. Applying one of the simplest specifications possible, namely a symmetric two-country intra-industry trade model with fixed export costs that are heterogeneous across firms, we find that the reciprocal reduction of small tariffs reduces welfare.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 496
- Klassifikation
-
Wirtschaft
Economic Integration
Trade Policy; International Trade Organizations
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- Thema
-
Optimal tariff
welfare
intra-industry trade
monopolistic competition
protectionism
Intraindustrieller Handel
Zwei-Länder-Modell
Zoll
Wohlfahrtseffekt
Monopolistischer Wettbewerb
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Guldager Jørgensen, Jan
Schröder, Philipp J. H.
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2005
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Guldager Jørgensen, Jan
- Schröder, Philipp J. H.
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2005
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