Sign in
Endogenous choice of trade policy instruments
Journal article   Peer reviewed

Endogenous choice of trade policy instruments

Wolfgang Mayer and Raymond G. Riezman
Journal of international economics, Vol.23(3), pp.377-381
11/01/1987
DOI: 10.1016/0022-1996(87)90063-8

View Online

Abstract

Recently developed theories of endogenous trade policy formation have attempted to explain tariffs as the result of economic interest-seeking by individuals or groups. This note demonstrates that tariffs will not emerge as a policy choice if income is redistributed solely through trade policy-induced factor price changes. A production tax cum subsidy will be adopted as both gainers and losers are better off than with a tariff.

Details

Metrics

1 Record Views
Logo image