| Felbermayr, Gabriel; Jung, Benjamin (2012): Unilateral trade liberalization in the melitz model: A note. In: Economics Bulletin, Vol. 32, No. 2: pp. 1724-1730 |
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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.
| Item Type: | Journal article |
|---|---|
| Faculties: | Economics Economics > Chairs > CESifo-Professorship for International Trade |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| ID Code: | 20572 |
| Deposited On: | 15. Apr 2014 09:00 |
| Last Modified: | 29. Apr 2016 09:17 |
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Unilateral trade liberalization in the Melitz model: A note. (deposited 15. Apr 2014 09:00)
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