Lake, James; Linask, Maia - Southern Methodist University, Department of Economics - 2013
Governments routinely practice binding overhang by setting applied tariffs below their binding WTO commitments. We … fluctuations in binding overhang. We relate the mean and variance of binding overhang over time to the model's parameters. A … stronger lobbying threat induces larger applied tariff concessions, increasing the variance of binding overhang. However, the …