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This paper shows that governments have no incentive to introduce non-tariff barriers when they are free to set tariffs … but they do when tariffs are determined cooperatively. We then show three results. First, with trade liberalization, there … is a progression from u sing tariffs only to quotas, and to antidumping constraints (when quotas are jointly eliminated …
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trade policies, such as applied import tariffs. The paper presents evidence of a counter-cyclical relationship between …
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