@article{oai:mie-u.repo.nii.ac.jp:00003329, author = {Kawabata, Yasushi and 川端, 康}, journal = {三重大学教育学部研究紀要. 自然科学・人文科学・社会科学・教育科学}, month = {Mar}, note = {application/pdf, This paper analyzes a foreign production subsidy to the intermediate good and domestic countervailing tariffs imposed on the intermediate good and on the final good incorporating the subsidized intermediate good in vertically related markets that are characterized by Cournot competition. It is shown that the optimal domestic response to a foreign production subsidy is a partially countervailing tariff on the intermediate and final goods. Retaliation with countervailing tariffs on the intermediate and final goods deters the foreign country from subsidizing its intermediate-good production. In contrast, retaliation with only a countervailing tariff on the intermediate good fails to deter foreign subsidization.}, pages = {93--115}, title = {Subsidies and countervailing tariffs in vertically related markets}, volume = {60}, year = {2009} }