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                                       Details for article 8 of 8 found articles
 
 
  Welfare and Protection in the Presence of Endogenous Transfer Prices
 
 
Title: Welfare and Protection in the Presence of Endogenous Transfer Prices
Author: Madan, Vibhas
Appeared in: International economic journal
Paging: Volume 6 (1992) nr. 3 pages 1-20
Year: 1992
Contents: This paper analyzes the welfare effects of a host-country tariff in the presence of endogenous transfer prices. The high transfer price and the low transfer price scenarios are analyzed in the presence of "arm's length" restraints on a foreign multinational. The welfare analysis decomposes the various elements which influence the tariff rate. Under the high transfer price regime the host country's wel- fare maximizing tariff is negatively related to the foreign price elasticity of demand for the multinational's product, and under the low transfer price regime it is related positively to the slope of the multinational's cost curves in the foreign country. Further, under arm's length restraints, it is never optimal for the host country to charge the "critical" tariff rate at which the multinational is indifferent between a low or a high transfer price. [F13, F23]
Publisher: Routledge
Source file: Elektronische Wetenschappelijke Tijdschriften
 
 

                             Details for article 8 of 8 found articles
 
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