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Optimum tariff on imports from imperfectly competitive labor‐managed firms
Author(s) -
Hwang Hong,
Lin YenShu,
Mai ChaoCheng
Publication year - 1993
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090140510
Subject(s) - tariff , imperfect competition , economics , competition (biology) , imperfect , international economics , microeconomics , labour economics , ecology , linguistics , philosophy , biology
This paper develops a model of international trade between a labor‐managed economy and a capitalist economy and examines the short‐ and long‐run optimal specific tariff in the presence of foreign imperfect competition among labor‐managed firms. It will be shown that the underlying conditions for the optimal tariff rule are different from conventional wisdom.