Not All Trade Restrictions are Created Equally ∗

@inproceedings{Cole2010NotAT,
  title={Not All Trade Restrictions are Created Equally ∗},
  author={M. T. Cole},
  year={2010}
}

• M. T. Cole
• Published 2010

There has been great focus in the recent trade theory literature on the introduction of firm heterogeneity into trade models. This introduction has highlighted the importance of the entry/exit decision of firms in response to changes in trade barriers. However, it is typical in many of these models to use iceberg transport costs as a general form of trade barriers that can be interchangeable with ad valorem tariffs. I show that this is not always an appropriate conclusion. Specifically, I… CONTINUE READING

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