By Paul Krugman, Alasdair Smith
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Additional info for Empirical Studies of Strategic Trade Policy
Optimal trade and industrial policy under oligopoly. Quarterly Journal of Economics 100:383-406. Feenstra, R. 1988. Quality change under trade restraints in Japanese autos. Quarterly Journal of Economics 103:131-46. , and Levinsohn, J. 1989. Distance, demand, and oligopoly pricing. NBER Working Paper no. 3076. : National Bureau of Economic Research, August. Halberstam, D. 1986. The reckoning. New York: Avon Books. , and P. Krugman. 1989. Market structure and trade policy. Cambridge: MIT Press. , and L.
Firms is small. Another way to get would be to use the result of Krishna and Itoh (1988) that 8 = +/( 1 + +), where 8 is domestic producers' share in expenditure, which equals ap/C. Thus, using the data described below to find 0 determines the value of The calibration procedure ensures that both methods produce the same Once we know r, E , rr, and rv, the first-order conditions (3) and (4) provide y and y*. These aggregate CVs can in turn be decomposed into the component 7% using the definitions of y and y* given above.
NBER Working Paper no. 3076. : National Bureau of Economic Research, August. Halberstam, D. 1986. The reckoning. New York: Avon Books. , and P. Krugman. 1989. Market structure and trade policy. Cambridge: MIT Press. , and L. Summers. 1989. Can inter-industry wage differentials justify strategic trade policy? In Trade policies for international competitiveness, ed. R. Feenstra, 85-1 16. Chicago: University of Chicago Press. Krishna, K. 1989. Trade restrictions as facilitating practices. Journal of International Economics 26 (3/4): 251-70.