This paper characterizes analytically the optimal tariff of a large one-sector economy with monopolistic competition and firm heterogeneity in general equilibrium, thereby extending the small-country results of Demidova and Rodriguez-Clare (JIE, 2009) and the homogeneous firms framework of Gros...

What tariffs would countries impose if they did not have to fear any retaliation? What would occur if there was a complete breakdown of trade policy cooperation? What would be the outcome if countries engaged in fully efficient trade negotiations? And what would happen to trade policy...

NOTE: The following is a description of the paper and not the actual abstract. Most studies of the welfare impacts of trade policy have ignored interactions between restrictive trade policies and pre-existing distortions from the income tax. This paper adds an income tax and consumer...

Most studies of the welfare impacts of trade policy have ignored interactions between restrictive trade policies and pre-existing distortions from the income tax. This paper adds an income tax and consumer labor/leisure decision to a specific factors trade model in order to examine the effects...