Please use this identifier to cite or link to this item:
Lambertini, Luca
Calzolari, Giacomo
Year of Publication: 
Series/Report no.: 
Quaderni - Working Paper DSE 392
This paper examines the equivalence among price-modifying and quantity fixing international trade policies in a differential game. We employ two well known capital accumulation dynamics for firms, due to Nerlove and Arrow and to Ramsey, respectively. We show that, in both cases, open-loop and closed-loop Nash equilibria coincide. Under the former accumulation the tariff-quota equivalence holds, but it does not under the latter. Moreover, in the Ramsey model, the country setting the trade policy prefers a quantityequivalent import quota to the adoption of the tariff.
Persistent Identifier of the first edition: 
Creative Commons License:
Document Type: 
Working Paper

Files in This Item:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.