Raimondos-Møller, Pascalis; Woodland, Alan D. - 2011
We examine in detail the circumstances under which reciprocity, as defined in Bagwell and Staiger (1999), leads to … fixed world prices. We show that a change of tariffs satisfying reciprocity does not necessarily imply constant world prices … reciprocity and constant world prices, these reforms do not follow from the reciprocity condition, but rather from the requirement …
