New BEA paper on vertical goods, which in turn are inputs direct investment, allowing specialization trade to final consumption goods. All firms to offshore while keeping Manufacturing trade and verti­ three types of goods may be production within the firms. cal specialization trade, which traded but face transportation Trade among affiliated firms can be defined as trade in goods costs and tar...

A strategy to convert quotas to tariffs is to auction the quota rights and use the realized auction prices as guides to setting tariffs. In the 1980s, New Zealand employed auctions to allocate quota licenses. We analyze the relationship between tariff-equivalents and auction prices for auctions with resale. Using panel data from New Zealand’s quota license auctions, we estimate the expected val...

We examine interaction between goods trade and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving imports of 22 OECD countries vis-à-vis 69 exporters. This points to linkages between market access conditions for goods and the structure of the service sector. Competition in...

Establishing separated markets for capacity, energy, and ancillary services (AS) is one of the key steps to liberalize electricity sector realize markets. This study aims at eliciting AS tariffs from unified capacity energy through a cost-based approach. In proposed framework, maintaining annual revenue requirements power plants are considered as main objective while separating tariff tariffs. ...

Public finance experts have long explored the issue of income taxes making the cost of market transactions higher than nonmarket ones. A 50 percent income tax, for example, requires $20,000 in income to purchase $10,000 of market goods. The tax can be avoided, however, if the same goods can be produced at home. The upshot is that income taxes encourage the home production of goods and services ...

Unilateral carbon policies are inefficient due to the fact that they generally mean that abatement takes place in high-cost countries and because they are subject to carbon leakage. In this paper, we ask whether the use of carbon tariffs — tariffs on the carbon embodied in imported goods — might lower the cost of achieving a given reduction in world emissions. Specifically, we explore the role ...

This paper analyses two-way access pricing in a telecommunications market where consumers are heterogeneous in their demand for calls and firms are allowed to use nonlinear tariffs. We first investigate how the presence of access charges affects the tariffs offered by firms in symmetric equilibrium. Next we show that under certain conditions each firm’s profit is independent of the level of (re...

We examine regulation of distribution tariffs in the Mexican natural gas industry. Average revenue in each period is constrained not to exceed an upper bound and is calculated as the ratio of total revenue to output in the current period. This regime implies incentives for setting two-part tariffs strategically. The usage charge is typically dropped to its lowest feasible level while the fixed ...

I analyze the welfare implications of protecting intellectual property rights (IPRs) in developing countries through its impact on innovation, market structure, and technology transfer. FDI, tariffs, and cooperation are introduced to the strategic IPR literature. In a North-South framework, the Southern government sets the IPR policy strategically by anticipating the Northern firm’s decision on...