Firm heterogeneity and firm behavior with conditional policies

Svetlana Demidova, Kala Krishna

Research output: Contribution to journalArticle

24 Scopus citations

Abstract

This paper shows that the result of Ju and Krishna [Ju, J., Krishna, K., 2002. Regulations, Regime Switches and Non-Monotonicity when Non-Compliance is an Option: An Application to Content Protection and Preference. Economic Letters 77, 315-321, Ju, J., Krishna, K., 2005. Firm Behavior and Market Access in a Free Trade Area with Rules of Origin. Canadian Journal of Economics 38 (1), 290-308], i.e., the non-monotonicity in the comparative statics across regimes, disappears, if exporters differ in their productivities, which provides very different predictions about the results of policy changes.

Original languageEnglish (US)
Pages (from-to)122-128
Number of pages7
JournalEconomics Letters
Volume98
Issue number2
DOIs
StatePublished - Feb 1 2008

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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