Series: IMF Working Papers
Author(s): Kala Krishna , and Ling Tan
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 April 2007
Keywords: firm heterogeneity, entry, free trade, domestic market, free entry, quota rents, world market, Market Structure, Firm Strategy, and Market Performance: General,
This paper considers the effects of trade policy-tariffs and quotas-when importing is done by competitive traders who are identical ex ante but differ ex post. We show that the standard equivalence results no longe...