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 …

infinite future. In this paper I analyze the setting of tariffs in a two-country model taking account of adjustment processes … induces policy makers with a short planning horizon to set lower tariffs because it enhances the short run boom following a … cut in tariffs. Monetary policy that aggressively fights deviations from its inflation target leads to even lower tariffs. …

reduces the potency of a country's optimal tariffs and therefore its incentive for unilaterally opting out of trade …

trade barriers or tariffs, or as an increase in export subsidies. In this paper, we show that none of these measures … the short run, they are less effective than general government spending impulses. Raising tariffs or trade barriers even …

The outcome of a trade war (with import tariffs and export subsidies) between two countries is analysed in a Cournot … reversion. However, it is shown that both countries minimaxing each other by setting prohibitive import tariffs and export taxes …

The paper reports the results of an experiment where asymmetric sellers of a product can obfuscate the market. We show …