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University of Tübingen Working Papers in Economics and Finance >
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http://hdl.handle.net/10419/55852
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| Title: | | Unilateral trade liberalization in the Melitz model: A note  |
| Authors: | | Felbermayr, Gabriel Jung, Benjamin |
| Issue Date: | | 2012 |
| Series/Report no.: | | University of Tübingen working papers in economics and finance 30 |
| 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. |
| Subjects: | | monopolistic competition heterogeneous firms international trade trade policy |
| JEL: | | F12 R12 |
| Persistent Identifier of the first edition: | | urn:nbn:de:bsz:21-opus-60796 |
| Document Type: | | Working Paper |
| Appears in Collections: | | University of Tübingen Working Papers in Economics and Finance
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