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In this paper, we analyze the trade war between two large countries when the trade policy is decided through majority voting. We show how the trade war equilibrium depends on the median voter production factor relative endowment. We compare this equilibrium to the one analyzed by Johnson where...
Persistent link: https://www.econbiz.de/10005779456
A recent phenomenon is the rapid spread of Antidumping (AD) laws mainly amongst developing countries (i.e. China, India, Mexico). Between 1980 and 2003 the number of countries in the world with an AD law more than doubled going from 36 to 97 countries. This proliferation of trade protection laws...
Persistent link: https://www.econbiz.de/10005042778
Advocates of antidumping (AD) laws downplay their effects by arguing that the trade flows that are subject to AD are small and their distortions negligible. This paper is the first to counter that notion by quantifying the worldwide effect of AD laws on aggregate trade flows. The recent...
Persistent link: https://www.econbiz.de/10005065373
Both environmental quality and health care expenditure are determinants of health and life expectancy, but the support for them appears to be different according to the electors' age, with a relatively larger support for health expenditure among the elderly as it is generally effective on a...
Persistent link: https://www.econbiz.de/10008550193
We present a model of political competition, in a multi-dimensional policy space and with policy-oriented candidates, to analyze the problem of health care finance. In our model, health care is either financed publicly (by means of general taxation) or privately (by means of a copayment). The...
Persistent link: https://www.econbiz.de/10005043177
We consider the following stage game : a domestic government chooses an import quota, then a domestic and a foreign firm choose their quality level before engaging a price competition. We first show that the indirect effect of the quota on the sales of the domestic producer are different...
Persistent link: https://www.econbiz.de/10005008229
This paper analyzes the role of retaliation in trade agreements. It shows that, in the presence of private information, retaliation can always be used to increase the welfare derived from such agreements by the participating governments. In particular, it is shown that retaliation is a necessary...
Persistent link: https://www.econbiz.de/10005008552
Persistent link: https://www.econbiz.de/10008550197
Persistent link: https://www.econbiz.de/10008550210
Governments set numerous norms to protect consumers. Two countries may achieve the same level of protection of their consumers through different specifications. The adaptation costs induced by these differences create barriers to trade. The principle of mutual recognition addresses the problem...
Persistent link: https://www.econbiz.de/10008550248