Export Subsidies in Competitive Markets

16 Pages Posted: 22 Apr 2010

See all articles by Paul Tompkinson

Paul Tompkinson

Victoria University of Wellington - Te Herenga Waka - School of Economics & Finance

Date Written: April 21, 2010

Abstract

This note points out that the treatment by many texts of export subsidies in a competitive market contains an error. The error is shown to be present in both partial equilibrium and general equilibrium models. The paper also considers the ranking of export subsidies, production subsidies and a combined policy consisting of a tariff and an export subsidy when the government has a non-economic objective.

Keywords: Export subsidy, competitive market, noneconomic objectives, tariff, production subsidy

JEL Classification: F10, F11, F13

Suggested Citation

Tompkinson, Paul, Export Subsidies in Competitive Markets (April 21, 2010). Available at SSRN: https://ssrn.com/abstract=1593822 or http://dx.doi.org/10.2139/ssrn.1593822

Paul Tompkinson (Contact Author)

Victoria University of Wellington - Te Herenga Waka - School of Economics & Finance ( email )

P.O. Box 600
Wellington 6140
New Zealand

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