@techreport{7cc73e364f0a4d77a40349ed1708c32c,
title = "Dundee Discussion Papers in Economics 100: Targeted strategic trade policy with domestic cost heterogeneity",
abstract = "This paper examines optimal strategic trade policy under oligopoly with many home and foreign firms when firms have different levels of efficiency and a trade-off exists between the subsidy bill and firms{\textquoteright} profits. The first-best policy involves a structure of firm-specific export subsidies and export taxes in which the government favours the most efficient firms unless the social cost of funds is sufficiently high. When the policy is constrained to a uniform subsidy, the optimal policy depends on the relative number of home and foreign firms and on the curvature of demand. Deficiencies of the uniform subsidy are examined.",
keywords = "Strategic trade policy, Heterogeneous firms, Export subsides",
author = "Dermot Leahy and Catia Montagna",
year = "1998",
language = "English",
series = "Dundee Discussion Papers in Economics",
publisher = "University of Dundee",
number = "100",
type = "WorkingPaper",
institution = "University of Dundee",
}