A global analysis of the welfare effect of changes in tariffs is undertaken in multihousehold economy with any finite number of private and pure (nonexclusive and nonrivalrous) public goods. The sensitivity of the results to various methods of financing the production of public goods is examined...

We provide a novel (and old) argument for the nonequivalence of tariffs and quotas, based on the famous paper by Hotelling (1931). Unlike tariffs, quantitative restrictions are inherently dynamic. As long as the foreign exporter earns positive marginal profits, he raises their present value by...