I have found that the optimal environmental and trade policies for both domestic and foreign countries are in the first best case, the Pigouvian tax, and the reciprocal of the elasticities of the foreign offer curves for the non-numeraire final good
and intermediate input, i.
Our results for the effect of final-good trade costs on the death probability of establishments are similar to the results of Bernard, Jensen, and Schott (2006b), and hence provide support for the theoretical channels identified in the heterogeneous-firm models of trade in final goods
of Bernard et al.
Individual human capital can be divided into skills in final good
2] that keeps the volume of final good
imports constant given a carbon price [g.
The final good
Y is assumed to be perfectly tradable and its market is perfectly competitive.
With the existence of fixed costs of production, only one firm will be allowed to produce each final good
When none of the final good
is produced, the upstream technology is at least as good as the integrated technology.
They produce the final good
by bundling all intermediate goods into a single final homogenous commodity purchased by households.
Nevertheless, and consistent with our analysis in the section 'Factors determining labour productivity in the long run', reducing mark-ups in final good
production generates output effects mainly from an increase in physical capital.
i] denotes the relative prices of the i-th intermediate good and the final good
t]) is the home-country rental rate of capital, where the prices of both factor inputs are measured in units of the final good
Skorupski proposes a more moderate alternative, one holding that there exist 'many normative principles governing action that are justified in their own terms, without derivation from the final good
,' yet which 'must give way if they turn out to be systematically incompatible with that final good