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Can subsidies for MARs be procompetitive?
- Author / Creator
- Available as
- Online
- Summary
-
Abstract: In contrast to recent literature, we show that market access requirements (MARs) can be implemented in a procompetitive manner even in the absence of threats in related markets. By focusi...
Abstract: In contrast to recent literature, we show that market access requirements (MARs) can be implemented in a procompetitive manner even in the absence of threats in related markets. By focusing on subsidies that are paid only when the requirement is met, we show that a MAR can increase aggregate output relative to free trade provided that the right set of firms is targeted. In the context of a model with multiple Japanese and US firms, we show that a MAR on US imports is procompetitive as long as the US firms are the ones targeted to receive the subsidy.
Details
- Creator
- Kala Krishna, Suddhasatwa Roy, Marie C. Thursby
- Format
- Books
- Language
- English
- Publication
-
- Cambridge, MA : National Bureau of Economic Research, [2000]
- ©2000
- Physical Details
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- 1 online resource (14, [9] pages) : illustrations
- data file
- OCLC
- ocm70123400
- "March 2000."
- Includes bibliographical references (pages 13-14).
Subjects
- Export subsidies -- United States -- Econometric models.
- Export subsidies -- Japan -- Econometric models.
- Import quotas -- United States -- Econometric models.
- Import quotas -- Japan -- Econometric models.
- Competition, International -- Econometric models.
- United States -- Commerce -- Japan -- Econometric models.
- Japan -- Commerce -- United States -- Econometric models.