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SCOPUS 학술저널

Strategic Export Subsidies under a Budget Constraint

Strategic Export Subsidies under a Budget Constraint: Ad Va l o rem versus Specific

This note shows that in the Brander-Spencer model of export subsidy, if there is no cost of financing subsidies, either a specific export subsidy or an ad valorem export subsidy can be used to achieve the same maximum welfare level. If, however, there is a binding budget constraint, a specific subsidy dominates an ad valorem subsidy. (JEL Classification: F13)

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Welfare Comparison

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