Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … quantification based on countries' observed degrees of openness, tariff revenues, and on the gravity elasticities of tariffs and …

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … quantification based on countries observed degrees of openness, tariff revenues, and on the gravity elasticities of tariffs and …

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to … iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of … quantification based on countries' observed degrees of openness, tariff revenues, and on the gravity elasticities of tariffs and …

-supply elasticity and of the import-demand elasticity. We demonstrate the effectiveness of our techniques in the case of MFN tariffs and ….g. most favored nation tariffs) and on the exporter side (e.g. export subsidies), even in the presence of exporter and …

the analysis of Arkolakis, Costinot and Rodriguez-Clare (2012) to encompass revenue-generating import tariffs. Our formula …We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall … countries with relatively high status quo tariffs, our formula predicts 30-60\% larger gains from trade than the icebergs only …

country's relative size or relative average productivity. Furthermore, in the two-country Nash equilibrium, tariffs turn out … to be strategic substitutes. Small or poor economies set lower Nash tariffs than large or rich ones. Lower transportation … costs or smaller fixed market entry costs induce higher equilibrium tariffs and larger welfare losses relative to the case …

Why are empirically observed tariffs so much lower than theoretically calculated Nash-equilibrium tariffs? We argue … allows us to take account of the transitional process after a change in tariffs. (ii) It allows us to take account of the … shortsightedness of policy makers. We show that Nash-equilibrium tariffs based on a dynamic trade model are lower than Nash …

reduce world carbon emissions. We analyze the effects of carbon tariffs on trade, welfare and carbon emissions in a multi …Carbon tariffs are one prominently discussed environmental policy. The proponents stress the carbon tariffs' ability to …-sector, two-factor gravity model. The introduction of carbon tariffs reduces welfare in most countries, but the effect tends to be …