Optimal commercial policy for an open economy with domestic distortions
AuthorChang, Winston W.
Michael, Michael S.
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This paper formulates the optimal commercial policies with domestic distortions when the unconstrained first-best policy options are unavailable. Explicit formulae for the values of the interventionist variables are presented. The results synthesize and clarify previous formulations, and provide some exact conclusions beyond the usual 'indefinite' second-best outcomes. © 1989.