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02 新潟大学経済論集 = The journal of economics, Niigata University >


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Title :<論説>Optimal Subsidy and Tariff in a Two-country Model
Title alternative :<Articles> Optimal Subsidy and Tariff in a Two-country Model
Authors :Hamada, Kojun
Publisher :新潟大学経済学会
Issue Date :Sep-2011
Journal Title :新潟大学経済論集
Volume :91
Start Page :51
End Page :68
ISSN :0286-1569
Abstract :The paper examines the optimal policy on subsidy and import tariff under international oligopoly in a two-country model. We show that the optimal subsidy provided to domestic firms always deters foreign firms from entering the domestic market, whereas imposing an optimal tariff on foreign firms allows foreign firms to enter the market. In addition, it is shown that the domestic government can bring about greater domestic welfare by subsidizing the domestic firms than by imposing a tariff on foreign firms. The results suggest that from the viewpoint of protection of the domestic industry, the national government prefers the subsidy policy to the tariff policy in order to restrict import.
Keywords :subsidy
entry deterrence
international oligopoly
Type Local :紀要論文
Language :eng
Format :application/pdf
URI :http://hdl.handle.net/10191/16927
fullTextURL :http://dspace.lib.niigata-u.ac.jp/dspace/bitstream/10191/16927/1/91_51-68.pdf
Appears in Collections:02 新潟大学経済論集 = The journal of economics, Niigata University

Please use this identifier to cite or link to this item: http://hdl.handle.net/10191/16927