Welfare effect of tariff for a small country in the case of traditional tariff (exogenous) compared to free trade would decrease the welfare of the country. This paper has shown that the welfare effect of tariff in case of untraditional tariff (endogenous) can be explained by using the specific factors models (Jones) that fundamentally determined by Cournut- Nash Equilibrium system in contrary ...

according to endogenous tariff hypothesis, tariff is endogenously determined by the set of political economy factors. using the co- integrated var approach and in the framework of the hypothesis, the present study examined the determinants of tariff protection in iran over the period 1971-2010. based on the results, though no evidence has been obtained about the impact of unemployment and impor...

Previous theoretical contributions on endogenous tariff formation have focused on trade models with homogeneous goods and constant returns to scale. This paper investigates the political equilibrium of trade policy when economic structure is instead characterized by differentiated products and increasing returns to scale and there exists intra-industry trade. The result shows that endogenous ta...

Can the optimal tariff be zero for a growing large country? To pursue possibility, we extend Rivera-Batiz–Romer lab-equipment model of endogenous technological change to include asymmetric countries, import tariffs, and either homogeneous or heterogeneous firms. Each country's domestic revenue share is sufficient statistic its long-run growth rate, but it not welfare. A unilateral reduction by ...

Government budget balance forces the endogenous use of distortionary tax instruments when an exogenous reform is implemented. The aggregate efficiency of such reforms is based on comparisons of simple summary measures of the Marginal Cost of Funds of the various tariff or quota changes with the Marginal Cost of Funds of the alternative taxes, or of the Marginal Benefit of Government supplied go...

This paper determines the effect that offset payments under the Continued Dumping and Subsidy Offset Act (CDSOA also known as the “Byrd Amendment”) have on tariff levels that are lobbied for by U.S. producer groups. We derive the optimum antidumping tariff that would maximize the welfare of producers receiving CDSOA offset payments. We compare and contrast this newly derived “optimal antidumpin...

Tariffs can create allocative inefficiencies that reduce national income. There is thus a legitimate presumption that high average levels of tariffs are a poor policy choice. However, tariffs can also be used to raise national income provided the appropriate industry is chosen for protection. Examples include Paul Krugman’s (1987) model of learning-by-doing and Gene M. Grossman and Elhanan Help...

s: In this paper, our focus is to see the impact of imperfect international capital mobility on tariff adjustment process between two countries. Assuming complete specialization of each country, the results show that the existence of an imperfect international capital market may trigger a gradual tariff adjustment. That is, when it takes time and causes idle capital in reallocating capital betw...

This paper develops the theory of the optimal tariff under the Byrd Amendment when producers are also processors. The optimal tariff in this case is equal to the optimal processor tariff (when the processor is not also a producer) and is smaller than the optimal producer tariff (when the producer is not also a processor). In a vertical market structure, the welfare of a producer/processor (P/P)...