Trade Policy and Import Competition under Fluctuating Prices
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NBER Working Paper No. 628
Issued in February 1981
NBER Program(s): ITI IFM
When subsidies and tariffs are applied to imports with fluctuating prices, it is shown that the output response of domestic producers depends on market structure and their attitude toward risk. The domestic industry response is contrasted under two types of market structure, a monopoly and a competitive industry. Some unanticipated results suggest caution in the implementation of trade policy.
Published: Donnenfeld, Shabtai & Strebel, Paul, 1983. "Industry structure and trade policy under fluctuating import prices," European Economic Review, Elsevier, vol. 23(2), pages 203-215.
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