We use a version of the small-union Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we analyze the condition under which illegal immigration is likely to increase (or decrease) in response to reciprocal trade liberalization between...

We use a version of the Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we consider the small union case and derive the Nash tariff equilibrium for two potential members of a Preferential Trade Agreement (PTA). We analyze...

We use a version of the Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. First, we consider the small union case and derive the Nash tariff equilibrium for two potential members of a Preferential Trade Agreement (PTA). We analyze...

This paper unveils three dirty tricks exercised by Kemp and Shimomura (2000): 1. They play around with an ambiguous trade balance equation; 2. They change the convex social indifference curve into a concave one; 3. They think they can dictate market prices. Without these tricks, there is no...

This paper reviews the optimal tariff theory of Kahn (1947) and Graaff (1949), and finds that their solutions are not optimal. Indeed, their policy recommendations are welfare detrimental. Graaff's tariff is even uncertain, can be positive or negative

This paper points out some mistakes in the so-called optimal tariff theory. When they are corrected, the trade model does not offer any welfare implication. It removes a major blocking stone for the World Trade Organization to promote free trade

This paper examines theoretically the structure of optimal (Nash equilibrium) tariff rates under retaliation in a two-country economy with more than two traded goods. We provide a condition under which the equilibrium tariff rates become uniform in both countries, and explore the ranking of the...

This paper unveils a serious mistake committed by Kemp (1967). His positive tariff is actually an export subsidy. The corrected Kemp model implies that the whole optimal tariff theory must have been working in the wrong direction

This paper unveils the tricks of how Kahn achieves his optimal tariff theory. When corrected, the optimal tariff turns out to be zero or negative.Apart from David Ricardo's comparative advantage, the most influential theory in the international trade study must be the optimal tariff theory (C....

Trade liberalization can imply slow and long adjustment processes. Taking account of these adjustment processes can change the evaluation of trade policy, especially when policy makers care more about the next couple of years than the infinite future. In this paper I analyze the setting of...