Does a ‘non-committed’ government always generate lower social welfare than its ‘committed’ counterpart? Strategic trade policy when consumer surplus matters

2011 ◽  
Vol 39 (4) ◽  
pp. 533-556 ◽  
Author(s):  
Krešimir Žigić
Keyword(s):  
Social Welfare ◽  
Trade Policy ◽  
Consumer Surplus ◽  
Strategic Trade Policy ◽  
Strategic Trade

scholarly journals Strategic trade policy with interlocking cross-ownership

2021 ◽  
Author(s):  
Luciano Fanti ◽  
Domenico Buccella
Keyword(s):  
Trade Policy ◽  
Free Trade ◽  
Strategic Trade Policy ◽  
Cournot Duopoly ◽  
Public Intervention ◽  
Tax Subsidy ◽  
Strategic Trade ◽  
Duopoly Model ◽  
Product Competition ◽  
Cross Ownership

AbstractBy analysing interlocking cross-ownership, this work reconsiders the inefficiency of activist governments that set subsidies for their exporters (Brander and Spencer, J Int Econ 18:83–100). Making use of a third-market Cournot duopoly model, we show that the implementation of strategic trade policy in the form of a tax (subsidy) when goods are differentiated (complements) is Pareto-superior to free trade within precise ranges of firms’ cross-ownership, richly depending on the degree of product competition. These results challenge the conventional ones in which public intervention (1) is always the provision of a subsidy and (2) always leads to a Pareto-inferior (resp. Pareto-superior) equilibrium when products are substitutes (resp. complements).

Promoting CCS in Europe: A Case for Green Strategic Trade Policy?

2022 ◽  
Vol 43 (01) ◽  
Author(s):  
Finn Roar Aune ◽  
Simen Gaure ◽  
Rolf Golombek ◽  
Mads Greaker ◽  
Sverre A.C. Kittelsen ◽  
...  
Keyword(s):  
Trade Policy ◽  
Strategic Trade Policy ◽  
Strategic Trade
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