期刊名称：Discussion Papers / Norwegian School of Economics and Business Administration
印刷版ISSN：0804-6824
出版年度：2014
卷号：2014
出版社：Bergen
摘要：This paper derives optimal trade and domestic taxes for a small open economycontaining a monopolistically competitive (MC) sector in which firms may haveheterogeneous productivity levels. Analysis encompasses cases in which thedomestic MC sector is able to expand or contract flexibly, or is constrained to beof fixed size. In the former case domestic protection can bring gains by increasingthe number of product varieties on offer; these gains (and the corresponding ratesof domestic subsidy or of import tariffs) are reduced by heterogeneity of foreignexporters some of whom may withdraw from the market. In the latter case gainsfrom protection arise from terms-of-trade effects; since various margins ofsubstitution are switched off, only the relative values of domestic taxes, importtariffs and export taxes matter. In general, policies work through both a terms-oftradeand a variety effect, and the paper shows how the relative importance ofeach depends on the structure of the economy
关键词：trade policy; monopolistic competition; heterogeneous firms; terms of trade; variety;productivity
