scholarly journals Optimal Trade Policy with Monopolistic Competition and Heterogeneous Firms.

2014 ◽  
Author(s):  
Jan I. Haaland ◽  
Anthony J. Venables
Keyword(s):  
Trade Policy ◽  
Monopolistic Competition ◽  
Heterogeneous Firms ◽  
Optimal Trade Policy

scholarly journals Micro to Macro: Optimal Trade Policy With Firm Heterogeneity

Econometrica ◽  
2020 ◽  
Vol 88 (6) ◽  
pp. 2739-2776
Author(s):  
Arnaud Costinot ◽  
Andrés Rodríguez-Clare ◽  
Iván Werning
Keyword(s):  
Trade Policy ◽  
Small Firms ◽  
Firm Heterogeneity ◽  
Heterogeneous Firms ◽  
Point Of View ◽  
Foreign Firms ◽  
Empirical Observation ◽  
Self Selection ◽  
Export Subsidies ◽  
Selection Of

The empirical observation that “large firms tend to export, whereas small firms do not” has transformed the way economists think about the determinants of international trade. Yet, it has had surprisingly little impact on how economists think about trade policy. Under very general conditions, we show that from the point of view of a country that unilaterally imposes trade taxes to maximize domestic welfare, the self‐selection of heterogeneous firms into exports calls for import subsidies on the least profitable foreign firms. In contrast, our analysis does not provide any rationale for export subsidies or taxes on the least profitable domestic firms.

scholarly journals Comparative Advantage and Optimal Trade Policy

2013 ◽  
Author(s):  
Arnaud Costinot ◽  
Dave Donaldson ◽  
Jonathan Vogel ◽  
Ivan Werning
Keyword(s):  
Trade Policy ◽  
Comparative Advantage ◽  
Optimal Trade Policy
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