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Title:Unilateral trade liberalization in the Melitz model: A note PDF Logo
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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