We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall. Covering various one-sector trade models that may or may not feature extensive margins and imperfect competition, we generalize the analysis of Arkolakis, Costinot and Rodriguez-Clare (2012) to encompass revenue-generating import tariffs. Our formula permits easy quantification...

ABARE project 1653 Natural gas demand forecasts are used by regulatory bodies when setting transmission and distribution tariffs. Reviews of current forecasting methodology used by gas companies indicate that the current approaches may be inappropriate for forecasting gas demand. The modeling methodology for gas demand forecasting and the implications of the results for the regulation of transm...

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 wi...

We present a methodology allowing to introduce manufacturers and retailers vertical contracting in their pricing strategies on a differentiated product market. We consider in particular two types of non linear pricing relationships, one where resale price maintenance is used with two part tariffs contracts and one where no resale price maintenance is allowed in two part tariffs contracts. Our c...

In this paper, we analyze the issue of optimal tariffs when the Northern and Southern firms compete in quantities in an imperfectly competitive Northern market and there are Ž . potentially varying degrees of intellectual property rights IPR violation by the South. IPR Ž . violation is reflected through the leakage of technological knowledge ‘‘spillovers’’ from the Northern to the Southern firm...

This paper explores the links between international trade theory and the practice of trade and industrial policy in open economies, with special attention to three areas where theoretical lessons have been misunderstood in policy debates. I argue that the ‘concertina rule’ for tariff reform justifies reductions in high tariffs, but not moves towards uniformity, and particularly not increases in...

The international experience demonstrates that, the best water and sewerage services are those where the cost are fully paid for by the consumer, through the establishment of tariffs. This includes investment costs and operational costs. Whenever the tariffs are settled below the full service costs either the tax-payers end up paying the bill, thus subsidizing inefficient service providers or, ...

In many service industries, firms introduce three-part tariffs to replace or complement existing two-part tariffs. While both twoand three-part tariffs have been studied in the extant literature, to our best knowledge there have been no empirical studies of customer choice and usage when both types of tariffs are on offer. A pertinent question in that context is whether three-part tariff usage ...

Using the Laffont, Rey and Tirole (1998) framework, a model of competition between vertically integrated telecommunications networks in a deregulated environment is developed. Two local operators compete in linear and non linear tariffs (i.e. two-part tariffs) in the subscribers market. In addition, they are integrated downstream in a potentially competitive sector (i.e. long distance sector) w...

We examine multinationals’ optimal entry modes into foreign markets as a function of market size, FDI fixed costs, tariffs and transport costs. Our results highlight why large countries are more likely to attract acquisition investment, while intermediate sized countries may be served predominantly through trade, even in the presence of high tariffs. Small countries are most likely to experienc...