In a model with cost-based informational asymmetry and trade policy determined endogenously, we show that tariffs and … follows from this difference in their sensitivities. The model is benchmarked so that under complete information tariffs and …

Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy …

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. …

on both the supply and demand side. Crops are stochastic and exporting countries can impose export tariffs to protect … domestic food prices. We show that export tariffs are strategic complements and that poor harvests can lead to a sharp increase … in equilibrium tariffs. Due to the strategic interplay between the governments of exporting countries, traders can gain …

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 …

Historically, tariffs have been an attractive policy tool to protect domestic industries. The benefits of such a policy …

-generating tariffs. This approach allows us to take account of adjustment dynamics, distributional aspects and the time horizon of policy … makers and workers. In response to a unilateral increase in tariffs aggregate consumption increases only sluggishly so that … policy makers with a short time horizon tend to set lower tariffs. Workers' preferences for tariffs depend on the sector …