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, unlike other import tariffs, AD duties are not absorbed by exporters. The results on firms' average markups also suggest that …
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We develop a simple two-region, cobweb-type dynamic equilibrium model to demonstrate the existence of optimal trade barriers. A pure comparative statics analysis of our model suggests that a reduction of trade barriers always enhances welfare. However, taking a dynamic perspective reveals that...
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offsetting effects from the exchange rate,we use detailed product data on unit values of manufacturing imports and document that … that offsetting effects on the newly imposed tariffs were substantial. …
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