Variable demand elasticities and tariff liberalization

@article{Spearot2013VariableDE,
  title={Variable demand elasticities and tariff liberalization},
  author={Alan C. Spearot},
  journal={Journal of International Economics},
  year={2013},
  volume={89},
  pages={26-41}
}
This paper examines tariff liberalization within an environment of heterogeneous demand elasticities. Varieties produced at a lower cost (a) are imported at lower absolute demand elasticities and (b) earn higher revenues. By virtue of larger demand elasticities, low revenue varieties benefit the most from tariff liberalization. Further, if varieties are substitutable, low revenue varieties benefit at the expense of high revenue varieties. These predictions are confirmed using a case study of US… Expand
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