Taste for Imports and Market Integration

Barros, Pedro Pita; Martinez-Giralt, Xavier

http://hdl.handle.net/10362/85988

Utilize este identificador para referenciar este registo.

Nome:	Descrição:	Tamanho:	Formato:
WP214.pdf		964.92 KB	Adobe PDF	Ver/Abrir

Contacte-nos

Autores

Barros, Pedro Pita

Martinez-Giralt, Xavier

Resumo(s)

We purport to assess the effects of market integration when preferences for the foreign good differ across domestic consumers. We consider a characteristics line with two locations at the end points (countries). Consumers are in one or in the other country, with zero density otherwise. Preference for the foreign good varies across consumers. We show that while the pre-integration equilibrium had two-way trade, induced by taste differences, the post-integration equilibrium may have two-way trade or one-way trade. The one-way trade runs from the small country to the big economy. Welfare effects of market integration are also addressed.

URI

http://hdl.handle.net/10362/85988

Citação

Barros, Pedro P. and Martinez-Giralt, Xavier, Taste for Imports and Market Integration (January, 1994). FEUNL Working Paper Series No. 214

Editora

Nova SBE

Coleções

NSBE - Working Paper Series

Ver registo completo