Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Seefeldt says 'consumption smoothing' behavior makes long-term recovery more difficult for economically vulnerable

Seefeldt criticizes Kansas legislation restricting daily cash withdrawals from public assistance funds

Prescott says sex offender registries may increase recidivism by making offender re-assimilation impossible

Highlights

Elizabeth Bruch wins Robert Merton Prize for paper in analytic sociology

Elizabeth Bruch wins ASA award for paper in mathematical sociology

Spring 2015 PSC newletter available now

Formal demography workshop and conference at UC Berkeley, August 17-21

Next Brown Bag

PSC Brown Bags will be back fall 2015


Market reactions to export subsidies

Archived Abstract of Former PSC Researcher

Desai, Mihir A., and James Hines, Jr. 2008. "Market reactions to export subsidies." Journal of International Economics, 74(2): 459-474.

This paper analyzes the economic impact of export subsidies by investigating stock price reactions to a critical event in 1997. On November 18, 1997, the European Union announced its intention to file a complaint before the World Trade Organization (WTO), arguing that the United States provided American exporters illegal subsidies by permitting them to use Foreign Sales Corporations to exempt a fraction of export profits from taxation. Share prices of American exporters fell sharply on this news, and its implication that the WTO might force the United States to eliminate the subsidy, which happened in 2004. The share price declines were largest for exporters with high profit margins and those whose tax situations made the threatened export subsidy particularly valuable. This evidence suggests that export subsidies do not merely benefit foreign consumers, but also improve the profitability of exporters, particularly those earning rents in imperfectly competitive markets. (c) 2007 Elsevier B.V. All rights reserved.

DOI:10.1016/j.jinteco.2007.04.006 (Full Text)

Browse | Search : All Pubs | Next