This paper characterizes analytically the optimal tariff of a large one-sector economy with monopolistic competition …-Clare (JIE, 2009) and the homogeneous firms framework of Gros (JIE, 1987). The optimal tariff internalizes a markup distortion … country's relative size or relative average productivity. Furthermore, in the two-country Nash equilibrium, tariffs turn out …

Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy … in response to an increased tariff. Moreover, any production gains that occur are biased towards higher cost domestic …

WTO negotiations deal predominantly with bound - besides applied - tariff rates. But, how can reductions in tariffs … ceilings, i.e. tariff rates that no exporter may ever actually be confronted with, generate market access? The answer to this … question relates to the effects of tariff bindings on the risk that exporters face in destination markets. The present paper …

data on tariffs and trade covering 130 countries. We show that regionalism has delivered limited effective liberalization … so far, leading to only a 0.3 percentage point (p.p.) cut in the worldwide average applied tariff duty between 2001 and … 2013 more than halved the worldwide welfare gains to be expected from the tariff-cutting provisions of the hypothetical …

We explore how outcomes of trade policy retaliation (Nash tariff games) are affected when trade simultaneously takes … goods will have more strategic power through tariff policy (and surplus countries less) than in models with balanced trade …. We calibrate such a model to China's trade with the rest of the world and explore two country tariff games using 2005 …

quantification based on countries' observed degrees of openness, tariff revenues, and on the gravity elasticities of tariffs and …Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of …

-unconstrained tariffs to enhance the size and performance of self-enforcing IEAs. We show that the size of stable IEAs shrinks when climate … coalitions are Stackelberg leaders and set tariffs in addition to their cap-and-trade schemes. Surprisingly, these smaller IEAs … reduce total emissions more effectively than the larger stable IEAs without tariffs. In the model with tariffs the signatory …

This paper introduces the concept of a steepest ascent tariff reform for a small open economy. By construction, it is … locally optimal in that it yields the highest gain in utility of any feasible tariff reform vector of the same length …. Accordingly, it provides a convenient benchmark for the evaluation of the welfare effectiveness of other well known tariff reform …

political debate about unilateral climate policies. Tariffs on the carbon embodied in imported goods from countries without … introduction of carbon tariffs can do more harm than good to domestic EITE industries. Two determinants drive the sign and … imported in intermediate inputs, industries might suffer from carbon tariffs. Secondly, the share of domestic output that is …