@techreport{NBERw7624,
 title = "Can Subsidies for MARs be Procompetitive?",
 author = "Kala Krishna and Suddhasatwa Roy and Marie C. Thursby",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "7624",
 year = "2000",
 month = "March",
 URL = "http://www.nber.org/papers/w7624",
 abstract = {In contrast to recent literature, we show that market access requirements (MARs) can be implemented in a procompetitive manner even in the absence of threats in related markets. By focusing on subsidies that are paid only when the requirement is met, we show that a MAR can increase aggregate output relative to free trade provided that the right set of firms is targeted. In the context of a model with multiple Japanese and US firms, we show that a MAR on US imports is procompetitive as long as the US firms are the ones targeted to receive the subsidy.},
}