Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario - 2013
We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall … the analysis of Arkolakis, Costinot and Rodriguez-Clare (2012) to encompass revenue-generating import tariffs. Our formula … countries with relatively high status quo tariffs, our formula predicts 30-60\% larger gains from trade than the icebergs only …