DISCUSSION PAPER SERIES
Discussion paper No.18
SHOULD A LARGE COUNTRY SUSTAlN
LAISSEZ FAIRE IN THE LONG-RUN?
Tsuyoshi Toshimitsu
Kwansei Gakuin University
September 1997
SCHOOL OF ECONOMICS
KWANSEI GAKUIN UNIVERSITY
1-155 Uegahara Ichiban-cho
Nishinomiya 662-8501, Japan
SHOULD
A
LARGE
Z.^/SS£Z Wj£.XMM
COUNTRY
XN
Tsuyoshi
THE
SUSTAIN
LONG — RUN?
TOSHIMITSU'
Abstract
This
paper
analyses
protection
in
the
importing
country
rate.
consider
We
exporters
perfect
faire.
or
and
a
whether
long-run,
cannot
the
tariff
precommit
cases
in
the
the
of
protection
to
depends
is
that
an
foreign
superior
the
ex
perfectly
government
case
faire
provided
monopolistic
competition,
However,
laissez
of
monopoly,
on
the
ante
competitive
In
always
choosing
the
School
Professor
of
size
of
the
Nishinomiya,
662,
Japan
Economics
of Economics
Kwansei Gakuin University
1-155, Uegahara Ichibanchyo,
TEL. 0798(54)6440
FAX. 0798(51)0944
E-mail,
[email protected]
-1-
foreign
of
laissez
laissez
market
an
tariff
case
choose
JEL Classification:F1
Associate
of
optimal
country.
♦
tariff
government
exporter.
should
to
faire
importing
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