Reconciling Observed Tariffs and the Median Voter Model

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Reconciling Observed Tariffs and the Median Voter Model

Median voter theory applied to trade policy predicts positive tariffs in capital-abundant countries and negative tariffs in labor-abundant countries. Negative tariffs are rare, and this paper reconciles the median voter theory with observed protectionism across countries. By considering large countries, I show the optimal tariff is a sum of the median voter component and a positive in terms of ...

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ژورنال

عنوان ژورنال: Economics & Politics

سال: 2014

ISSN: 0954-1985

DOI: 10.1111/ecpo.12045