Abstract
In this paper, the impact of tariffs and exchange rate on consumption and investment in an open economy of scarcity of capital is analysed. The dynamics and market price of capital, and the solution of foreign asset holding of the firm are discussed. Particular attention is also devoted to the social welfare aspects.
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Project supported by Sichuan Youth Science and Technology Foundation (261) and Laboratory of Management, Decision and Information Systems, Academia Sinica
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Zhineng, H., Jiuping, X. Effects of exchange rate and tariffs on an open economy of scarcity of capital. Appl. Math. Chin. Univ. 15, 453–460 (2000). https://doi.org/10.1007/s11766-000-0043-2
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DOI: https://doi.org/10.1007/s11766-000-0043-2