Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55852
Authors: 
Felbermayr, Gabriel
Jung, Benjamin
Year of Publication: 
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: 
Document Type: 
Working Paper

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