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In this paper we examine the empirical relevance of three prominent endogenous protection models. Is protection for sale, or do altruistic policy makers worry about political support? We find strong evidence that protection is indeed for sale. The important new result is, however, that not only...
Persistent link: https://www.econbiz.de/10011397792
We analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens...
Persistent link: https://www.econbiz.de/10011398023
This paper shows that governments have no incentive to introduce non-tariff barriers when they are free to set tariffs but they do when tariffs are determined cooperatively. We then show three results. First, with trade liberalization, there is a progression from u sing tariffs only to quotas,...
Persistent link: https://www.econbiz.de/10009781528
We find that Republican candidates lost support in the 2018 congressional election in counties more exposed to trade retaliation, but saw no commensurate electoral gains from US tariff protection. The electoral losses were driven by retaliatory tariffs on agricultural products, and were only...
Persistent link: https://www.econbiz.de/10012293757
Are retaliatiory tariffs politically targeted and, if so, are they effective? Do countries designing a retaliation response face a trade-off between maximizing political targeting and mitigating domestic economic harm? We use the recent trade escalation between the US, China, the European Union...
Persistent link: https://www.econbiz.de/10011986148
We study, theoretically and empirically, how countries choose intra-bloc tariffs and preferential margins when they form Preferential Trade Agreements (PTAs). Our model indicates that countries should set systematically lower preferential margins when the bloc takes the form of a free trade area...
Persistent link: https://www.econbiz.de/10012603023
We demonstrate that durable MFN tariff elimination affects trade patterns through several layers, and magnitudes of effects are sizable. The WTO Information Technology Agreement's (ITA) unique setting allows us to overcome the challenges associated with identifying effects of non-discriminatory...
Persistent link: https://www.econbiz.de/10011882479
The United States introduced Federal Trade Adjustment Assistance (TAA) as part of the 1962 Trade Expansion Act to dampen the adverse impact of increased trade on workers. Applications to receive TAA require approval from the Department of Labor. Guided by the technical criteria used by the U.S....
Persistent link: https://www.econbiz.de/10011414675
We propose a simple and flexible econometric approach to quantify ex-ante the "deep" impact of trade liberalization and the "hard" effects of protection with the empirical structural gravity model. Specifically, we argue that the difference between the estimates of border indicator variables for...
Persistent link: https://www.econbiz.de/10012599928
We develop a method to measure the incidence of monopolistic markup distortions in the global economy. Using semi-parametric formulas, we measure how trade modifies the deadweight loss of markups through two channels: (1) trade-induced change in markup dispersion, and (2) international...
Persistent link: https://www.econbiz.de/10014583781