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Title: Endogenous export subsidies and welfare under domestic cost heterogeneity
Author (s): Bandyopadhyay, Subhayu
Park, Eun Soo
Wall, Howard J.
Department/Lab Affiliations: Economics & Finance
Keywords: cost heterogeneity
welfare
Subject Terms: Market share.
Issue Date: 2004
Publisher: Wiley/ Blackwell (Formerly Blackwell or Blackwell Synergy)
Citation: Bandyopadhyay, Subhayu, Eun-Soo Park, and Howard J. Wall. "Endogenous Export Subsidies and Welfare under Domestic Cost Heterogeneity", Economics and Politics, vol. 16, no. 3, pp. 347-366, 2004.
Abstract: We present a model of international market share rivalry where the domestic export subsidy is determined by lobbying. Greater domestic cost heterogeneity leads to a higher subsidy level and a larger domestic market share. However, the relationship between cost heterogeneity and welfare is ambiguous. Starting from a near-symmetric situation, an increase in heterogeneity reduces domestic welfare if the number of domestic firms exceeds some critical value. When starting farther from symmetry, the welfare effect is reversed. Our findings are in contrast with the results from the existing literature where lobbying is ignored
Type: Article
text
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titleEndogenous export subsidies and welfare under domestic cost heterogeneity
contributor.authorBandyopadhyay, Subhayu
contributor.authorPark, Eun Soo
contributor.authorWall, Howard J.
contributor.deptlabEconomics & Finance
subjectcost heterogeneity
subjectwelfare
subject.LCSHMarket share.
date.issued2004
publisherWiley/ Blackwell (Formerly Blackwell or Blackwell Synergy)
identifier.citationBandyopadhyay, Subhayu, Eun-Soo Park, and Howard J. Wall. "Endogenous Export Subsidies and Welfare under Domestic Cost Heterogeneity", Economics and Politics, vol. 16, no. 3, pp. 347-366, 2004.
identifier.pub.URI
http://www3.interscience.wiley.com/journal/118791900/abstract
description.abstractWe present a model of international market share rivalry where the domestic export subsidy is determined by lobbying. Greater domestic cost heterogeneity leads to a higher subsidy level and a larger domestic market share. However, the relationship between cost heterogeneity and welfare is ambiguous. Starting from a near-symmetric situation, an increase in heterogeneity reduces domestic welfare if the number of domestic firms exceeds some critical value. When starting farther from symmetry, the welfare effect is reversed. Our findings are in contrast with the results from the existing literature where lobbying is ignored
typeArticle
type.DCMITypetext
type.statusPostprint
rightsPre-print: author can archive; Post-print: author can archive with restrictions; Restriction: Some journals impose embargoes typically of 6 or 12 months, occasionally of 24 months;no listing of affected journals available as yet; Conditions: Publisher version cannot be used;On author or institutional or subject-based server;Server must be non-commercial;Publisher copyright and source must be acknowledged with set phrase ("The definitive version is available at www.blackwell-synergy.com");Must link to publisher version;Articles in some journals can be made Open Access on payment of additional charge;
rightsThis material is presented to ensure timely dissemination of scholarly and technical work. Copyright and all rights therein are retained by authors or by other copyright holders. All persons copying this information are expected to adhere to the terms and constraints invoked by each author's copyright. In most cases, these works may not be reposted without the explicit permission of the copyright holder.
rights.URI
http://www.blackwellpublishing.com/pdf/JEC_CAF.PDF
rights.URI
http://www.blackwellpublishing.com/static/openaccess.asp
rights.URI
http://www.blackwellpublishing.com/static/selfarchive.asp
date.available2008-07-03T14:49:21Z
identifier.persist.URI
http://scholarsmine.mst.edu/post_prints/EndogenousExportSubsidiesAndWelfareUnderDom_09007dcc805279bc.html