A Large Country Imposing Import Tariff : Optimal Import Tariff in Terms of Adjustment Weights

This paper derives all the formulae of interest in autarky, free trade, and after an import tariff imposed by a large country in terms of competitive three adjustment weights based on market inverse demand and domestic inverse supply and the ratio of inverse supplies slopes. It also offers comparisons of results of free trade with autarky and after tariff with free trade. For the first time in the literature, this paper finds the range of import tariff that ensures the beggar-thy-neighbor policy and a formula for the optimal tariff that maximizes the tariff imposing country's welfare