Export Subsidies in Competitive Markets
16 Pages Posted: 22 Apr 2010
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: Suggested Citation
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