TY - JOUR
T1 - Industrial policy under monopolistic competition
AU - Flam, Harry
AU - Helpman, Elhanan
N1 - Funding Information:
was supported by the Bank ol Sweden Tercentenary Foundation and the for Economic Research. Harry Flam is also gGildUl to the Sven and Dagmar Torsten and Ragnar Soderberg’s Foundation and the Wallenberg Founda-for financial support during his slay at Tel Aviv University. Finally, we Avinash Dixit ror most helphrl comments on an earlier drab this paper.
PY - 1987/2
Y1 - 1987/2
N2 - We study the general equilibrium effects of tariffs, export subsidies, output subsidies and RD subsidies in a monopolistically competitive sector that produces differentiated products. Apart from allocative effects we examine the desirability of these policies from a welfare point of view. It is shown that a small tariff is welfare improving, but that the other instruments result in ambiguous welfare changes. The results depend on identifiable details of the production structure, the sectoral interlinkages through factor markets and preferences. These results are compared to other findings in the literature.
AB - We study the general equilibrium effects of tariffs, export subsidies, output subsidies and RD subsidies in a monopolistically competitive sector that produces differentiated products. Apart from allocative effects we examine the desirability of these policies from a welfare point of view. It is shown that a small tariff is welfare improving, but that the other instruments result in ambiguous welfare changes. The results depend on identifiable details of the production structure, the sectoral interlinkages through factor markets and preferences. These results are compared to other findings in the literature.
UR - http://www.scopus.com/inward/record.url?scp=12944318677&partnerID=8YFLogxK
U2 - 10.1016/0022-1996(87)90023-7
DO - 10.1016/0022-1996(87)90023-7
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AN - SCOPUS:12944318677
SN - 0022-1996
VL - 22
SP - 79
EP - 102
JO - Journal of International Economics
JF - Journal of International Economics
IS - 1-2
ER -
