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. …

country's relative size or relative average productivity. Furthermore, in the two-country Nash equilibrium, tariffs turn out … to be strategic substitutes. Small or poor economies set lower Nash tariffs than large or rich ones. Lower transportation … costs or smaller fixed market entry costs induce higher equilibrium tariffs and larger welfare losses relative to the case …

This paper studies the macroeconomic impact of higher tariffs using a two-country DSGE model with endogenous trade and … heterogeneous firms. The analysis consists of two scenarios. First, we assume that one country increases tariffs while the other … does not. Second, both countries raise tariffs. In the first case, the country that did not raise tariffs suffers an …

implications of a south-south customs union (CU) on the pattern of tariffs and welfare. We find that south countries always have …

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 …

changes under tariffs of different country-breadth. I show that a country-specific tariff like an antidumping duty induces …-competing firm, but will slow-down technology adoption by foreign exporting firms. Because safeguard tariffs can delay the foreign …