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We analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens...
Persistent link: https://www.econbiz.de/10011398023
This paper develops a two-country model of international trade in which citizens who are heterogeneous with respect to their factor endowments vote over tariffs and income tax rates. In the politico-economic equilibrium, each country chooses its national policies by majority voting, taking the...
Persistent link: https://www.econbiz.de/10013154945
ownerships are variable. The median voter hypothesis is used. In the long run, both trade protection and distribution of wealth …
Persistent link: https://www.econbiz.de/10010334360
ownerships are variable. The median voter hypothesis is used. In the long run, both trade protection and distribution of wealth …
Persistent link: https://www.econbiz.de/10005800403
The paper examines the impact of income inequality and mobility on income redistribution in a modified median voter model where redistributive conflict takes place both between educational groups and age-groups. The effects of inequality and mobility are not unambiguous but depend on factors...
Persistent link: https://www.econbiz.de/10012784101
This paper generalizes the analysis of distributive conflict, politics, and growth developed by by Alesina-Rodrik (1994 …). We construct a heterogenous-agent framework in which both growth and the distribution of wealth are endogenous. Due to … adjustments in the distribution of wealth, the composition of factor ownership across households equalizes in the long run. This …
Persistent link: https://www.econbiz.de/10011437002
Are retaliatiory tariffs politically targeted and, if so, are they effective? Do countries designing a retaliation response face a trade-off between maximizing political targeting and mitigating domestic economic harm? We use the recent trade escalation between the US, China, the European Union...
Persistent link: https://www.econbiz.de/10011986148
We analyze general equilibrium relationships between trade policy and the household distribution of income, decomposing …-adjusted social welfare functions in a general equilibrium structure mapping from tariff protection to household inequality. This … then examine endogenous tariff formation when policy makers care about both equity and special interests. …
Persistent link: https://www.econbiz.de/10011337398
political economy implications of trade theory hypothesis using data on democracy, factor endowments, and protection in the late …
Persistent link: https://www.econbiz.de/10012731145
We analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens...
Persistent link: https://www.econbiz.de/10013321021