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Export enhancing tariff protection with strategic precommitment
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| File | Description | Size | Format | |
|---|---|---|---|---|
| wp94_01.pdf | 1.03 MB | Adobe PDF | Download |
| Title: | Export enhancing tariff protection with strategic precommitment | Authors: | Leahy, Dermot | Permanent link: | http://hdl.handle.net/10197/1950 | Date: | Mar-1994 | Online since: | 2010-05-10T16:23:28Z | Abstract: | The import protection as export promotion thesis is examined from a positive and normative perspective in a series of two-stage games in which firms choose R&D and capacity in the first stage and quantity or price in the second. It is shown (i) that a tariff affects exports in two ways; firstly, with increasing marginal cost it crowds out exports; secondly by increasing R&D and/or capacity it raises exports indirectly, (ii) when firms choose R&D and quantities a small tariff will raise welfare. This result can be reversed under Bertrand competition. | Item notes: | A hard copy is available in UCD Library at GEN 330.08 IR/UNI | Funding Details: | Not applicable | Type of material: | Working Paper | Publisher: | University College Dublin. School of Economics | Series/Report no.: | UCD Centre for Economic Research Working Paper Series; WP94/1 | Keywords: | Protection; Export promotion; R&D; Oligopoly; Precommitment | JEL Codes: | F12; L13 | Subject LCSH: | Commercial policy--Mathematical models Oligopolies Exports--Mathematical models |
Language: | en | Status of Item: | Not peer reviewed | This item is made available under a Creative Commons License: | https://creativecommons.org/licenses/by-nc-sa/1.0/ |
| Appears in Collections: | Economics Working Papers & Policy Papers |
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