English, Article, Journal or magazine article edition: Public Firms in a Dynamic Third Market Model Sofia B. S. D. Castro; António Brandão

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Bookmark: http://trove.nla.gov.au/version/182522
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Public Firms in a Dynamic Third Market Model
Author
  • Sofia B. S. D. Castro
  • António Brandão
Physical Description
  • preprint
Notes
  • We set the third market model in a dynamic context to decide whether a country can achieve benefits by subsidizing a public rm's exports. We use calculus of variations with the constraint that the welfare is either maximized or grows at constant rate, reflecting the public concern of the firm. We conclude that a subsidy can be a good strategy for the country in some instances, even though only over a finite period of time. The duration of this period depends on the output strategy of the public firm as well as on exogenous factors.
  • public firms, strategic trade policy, third market model, calculus of variations
  • RePEc:por:fepwps:103
Language
  • English
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