Broda, Christian; Limão, Nuno; Weinstein, David E. - C.E.P.R. Discussion Papers - 2006
The theoretical debate over whether countries can and should set tariffs in response to export elasticities goes back over a century to the writings of Edgeworth (1894) and Bickerdike (1907). Despite the optimal tariff argument's centrality in debates over trade policy, there exists no evidence...