Not all trade restrictions are created equally

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Show simple item record Cole, Matthew T. 2010-12-09T15:20:55Z 2010-12-09T15:20:55Z 2010-04
dc.identifier.other 201009 en
dc.description.abstract There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade models. This introduction has highlighted the importance of the entry/exit decision of firms in response to changes in trade barriers. However, it is typical in many of these models to use iceberg transport costs as a general form of trade barriers that can be interchangeable with ad valorem tariffs. I show that this is not always an appropriate conclusion. Specifically, I illustrate that profit for an exporter is more elastic in response to tariffs than iceberg transport costs, which has implications for total product variety. One such implication is the possibility for there to be an anti-variety effect associated with lower transport costs while there also being a pro-variety effect associated with lower tariffs. en
dc.description.sponsorship Not applicable en
dc.format.extent 165177 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP 10 09 en
dc.relation.requires Economists Online Collection en
dc.subject Intra-industry trade en
dc.subject Trade policy en
dc.subject Firm heterogeneity en
dc.subject Monopolistic competition en
dc.subject.classification F10 en
dc.subject.classification F13 en
dc.subject.classification F15 en
dc.subject.lcsh Intra-industry trade--Econometric models en
dc.subject.lcsh Commercial policy en
dc.subject.lcsh Monopolistic competition en
dc.title Not all trade restrictions are created equally en
dc.type Working Paper en
dc.internal.availability Full text available en
dc.internal.webversions en
dc.status Not peer reviewed en
dc.neeo.contributor Cole|Matthew T.|aut| en

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