Abstract
This note introduces a leisure-consumption trade-off into monopolistic competition models resulting in ambiguous welfare effects of tariff protection. A small tariff is welfare reducing when the terms of trade effect is smaller than an international returns to scale effect.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.