search query: @author Staiger, R. W. / total: 10
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| Author: | Staiger, R. W. Tabellini, G. |
| Title: | Discretionary trade policy and excessive protection |
| Journal: | American Economic Review
1987 : DEC, VOL. 77:5, p.823-837 |
| Index terms: | TRADE POLICY TARIFFS FREE TRADE MATHEMATICAL MODELS |
| Language: | eng |
| Abstract: | A positive theory of tariff formation is presented, based on the idea that the optimal trade policy may be time inconsistent. Previous research and literature is reviewed. A model is presented in mathematical form. The optimal tariff is characterized under the assumption that the government can undertake a binding commitment to a particular trade policy, and thus can influence the expectations of private agents concerning its behavior. The time inconsistency of free trade is analyzed. Choices of the government are highlighted. The possibility of tariffs dominating production subsidies is discussed. Redistributive effects of trade policy are examined. |
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