Unilateral trade liberalization in the melitz model: A note

Felbermayr, Gabriel und Jung, Benjamin (2012): Unilateral trade liberalization in the melitz model: A note. In: Economics Bulletin, Bd. 32, Nr. 2: S. 1724-1730

Abstract

In the two-country Melitz (2003) model, unilateral trade liberalization is often cast as a reduction of iceberg transportation costs and wages are determined by a linear outside sector, We show that welfare results reverse when wages adjust and trade frictions are revenue-generating tariffs.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > CESifo-Professur für Außenwirtschaft
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• Sprache: Englisch