Bettendorf, Leon J.H.; Heijdra, Ben J. - Faculteit Economie en Bedrijfskunde, Rijksuniversiteit … - 1999
A dynamic overlapping-generations model of a small open economy with imperfect competition in the goods market is constructed. A tariff increase reduces output and employment and leads to an appreciation of the real exchange rate both in the impact period and in the new steady state. The tariff...
