The paper analyses the efficiency and the distributional effects of eliminating a tariff in a protected sector, in a Heckscher-Ohlin model of trade with costs of adjustment. The tariff can be eliminated at the onset or after a while. In case of postponing it the government may pre-announce the...

This paper discusses the welfare effects of trade in a Heckscher-Ohlin model of trade with costs of adjustment. The paper analyses the efficiency and the distributional effects of eliminating a tariff in a formerly protected sector. The tariff can be eliminated at the onset or after a while. In...