Cost Asymmetries in International Subsidy Games: Should Governments Help Winners or Losers?
This paper examines the optimality of export subsidies in oligopolistic markets, when home and foreign firms have different costs and there is an opportunity cost to public funds. Subsidies are found to be optimal only for surprisingly low values of the shadow price of government funds, and if subsi...
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| Format: | Working paper |
| Idioma: | English |
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CEPR
1991
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