Sala, Davide; Schröder, Philipp J. H.; Yalçin, Erdal - 2009
WTO negotiations deal predominantly with bound - besides applied - tariff rates. But, how can reductions in tariffs … from the real options literature; doing so we highlight the important role of bound tariffs at the extensive margin of … trade. We find that bound tariffs are more effective with higher risk destination markets, that a large binding overhang may …
