ERC WORKING PAPERS
The Myth of Profit-Shifting Trade Policies
Onur A. Koska and Frank Stähler
Abstract:
Since Dixit (1984), it is well accepted that a home country's best
policy is to ban imports in an oligopolistic market if the resulting
monopoly has a cost advantage over imports. This note (i) provides a
formal proof and (ii) extends this result to symmetric firms. When
domestic instruments are available, the optimal policy in a
non-cooperative game is to subsidize local production such that it
completely replaces imports. This policy is also globally first-best.
Full
Text (in Adobe
Acrobat format)

2015
15/13 Global
Constraints on Central Banking: The Case of Turkey
Ahmet
Benlialper and
Hasan Cömert
15/12 Intergenerational
Educational Mobility in Turkey
Aysıt
Tansel
15/11 The Myth of
Profit-Shifting Trade Policies
Onur A.
Koska and
Frank Stähler
15/10 Emerging
Markets Sovereign Bond Spreads, Credit Ratings and Global Financial
Crisis
Erdal
Özmen and
Özge Doğanay Yaşar
15/09 The impacts
of the 2008 global financial crisis on developing countries: the case
of the 15 most affected countries
Hasan
Cömert and
Esra Nur Uğurlu
15/08 Is There an
Informal Employment Wage Penalty in Egypt?
Aysit
Tansel,
Halil Ibrahim Keskin and
Zeynel Abidin Ozdemir
15/07 Resources on
the
Stage: A Firm Level Analysis of the ICT Adoption in Turkey
Derya
Fındık and
Aysıt Tansel
15/06 Intangible
Investment and Technical Efficiency: The Case of Software-Intensive
Manufacturing Firms in Turkey
Derya
Fındık and
Aysıt Tansel
15/05 Southwest
as the New Internal Migration Destination in Turkey
Ali T.
Akarca and
Aysıt Tansel
15/04 2002
Sonrası Türkiye Ekonomisinin Performansı: Karşılaştırmalı Bir
Analiz
Ahmet
Benlialper, Hasan
Cömert and
Güney Düzcay
15/03 Inequality
of Opportunities of Educational Achievement in Turkey over Time
Aysıt
Tansel
15/02 Unemployment
and
Labor Force Participation in Turkey
Aysıt
Tansel,
Zeynel Abidin Ozdemir
and
Emre Aksoy
15/01 Determinants
of Transitions across Formal/Informal Sectors in Egypt
Aysit
Tansel and
Zeynel Abidin Ozdemir
|