This paper studies the effects of tariffs in a two-period, two-good, macroeconomic model. The first period is characterized by unemployment and either nominal or real wage rigidities. In the second period, all prices are flexible and markets clear. Consumer behavior is based on intertemporal...

An open macroeconomic model where wages and employment are determinedby bargaining between a representative firm and a representative union is developed. The model is characterized by a number of regimes; in each of these regimes the effects of changes in the termsof trade and in government...