Bastos, Paulo; Straume, Odd Rune; Urrego, Jaime A. - Núcleo de Investigação em Políticas Económicas … - 2012
We examine whether and how rainfall shocks affect tariff setting in the agricultural sector. In a model of international oligopoly, we show that the impact of a negative rainfall shock on optimal import tariffs is generally ambiguous, depending on the weight placed by the domestic policy maker...